Bitcoin jumped more than 14% on Monday to a record high after Tesla said it had invested $1.5 billion in the most popular cryptocurreny last month.
The news sent Bitcoin soaring as high as $44,000 and Ethereum surges 7%. The electric carmaker unveiled the investment ten days after its chief executive Elon Musk added a “#bitcoin” tag on his Twitter profile page, which drove bitcoin higher on the day.
Tesla today said it had invested around $1.5 billion in bitcoin and expected to begin accepting payment for its cars and other products with it in the near future, prompting a 7% jump in the electronic currency.
Tesla said in a filing the decision was part of its broad investment policy as a company and was aimed at diversifying and maximizing its returns on cash.
It said it had invested an aggregate $1.5 billion in bitcoin under the changed policy and could “acquire and hold digital assets from time to time or long-term”.
Tesla’s investment is another sign that the cryptocurrency is gaining widespread traction as a type of investment. Enthusiasts often tout the digital asset as a hedge against inflation and store of value in a world awash with stimulus and rampant central-bank money printing.
“If retail and institutional interest continues to grow over the next month, Bitcoin could target the $45,000 level,” said Edward Moya, a senior market analyst at forex broker Oanda Corp.
In Bitcoin, famed fund manager Bill Miller extended his endorsement by reserving the right for his Miller Opportunity Trust to invest in the Grayscale Bitcoin Trust, a vehicle that institutions use for Bitcoin exposure, according to a US regulatory filing.
“If retail and institutional interest continues to grow over the next month, Bitcoin could target the $45,000 level,” said Edward Moya, a senior market analyst at forex broker Oanda Corp.
Bitcoin is up almost 50% this year following gains of over 300% in 2020.
Go to the news source: Bitcoin jumps 14% to record $44,000 on Tesla investment news
