Cryptocurrency price propelled by news of massive $ 1.5 billion investment by Tesla
Bitcoin pushed back its all-time high on Tuesday and surpassed $ 45,000, propelled by news of a massive $ 1.5 billion investment in the first cryptocurrency by Tesla, which also plans to accept it as a payment method. At around 2 p.m., bitcoin was trading for $ 45,445.27, after hitting a new high at $ 48,215.82 around 8 a.m. “Elon Musk gave bitcoin the strongest support in cryptocurrency historySaid Michael Hewson, analyst at CMC Markets.
The boss of Tesla, the richest man in the world, had frequently touted the merits of bitcoin and cryptocurrency on his Twitter account, but this is the first time that a group the size of Tesla has invested part of its cash in bitcoin. Private companies are usually reluctant to swap their cash dollars into something as turbulent as bitcoin.
«High bitcoin volatility will inevitably lead to volatility in Tesla’s earnings, and make company performance less predictable», Notes Ipek Ozkardeskaya, analyst at Swissquote. Another American company, software publisher MicroStrategy, has bought more than $ 1 billion worth of bitcoin in recent months. But this midsize company is in a very different position from that of Wall Street giant Tesla: MicroStrategy stock has become a way to bet on the price of bitcoin.
Cryptocurrency players therefore welcome the arrival of a larger company on the market: the purchase of Tesla “does not completely reshuffle the cards, but reinforces the idea that bitcoin has its place in corporate treasuries», Estimates Patrick Heusser, broker at the cryptocurrency specialist Cryptobroker. Bitcoin and other cryptocurrencies are not, however, unanimous: Janet Yellen, Joe Biden’s new Treasury secretary, recently warned that cryptocurrencies were “mainly used” for financing illicit activities and that the government should ensure that they do not become a means of laundering dirty money.