Bitcoin Hits All-Time High After Tesla Invests $1.5 Billion
Bitcoin is setting all-time high records after Tesla invested 1.5 billion dollars in the cryptocurrency.
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Bitcoin prices hit a new record on Tuesday, 9 February, after Tesla, Inc. on Monday revealed that has it invested 1.5 billion dollars in the cryptocurrency and will be soon accepting Bitcoin as a mode of payment for buying Tesla cars.
"The world's richest man allocating $1.5 billion of his company's treasury to Bitcoin speaks volumes about the magnitude at which crypto gains institutional adoption," said Antoni Trenchev, managing partner and co-founder of Nexo in London, reported Reuters.
Space X founder Elon Musk revealed his strategy, stating that its investment in digital currency may lead other alternative reserve assets to grow.
Meanwhile, noting Elon Musk’s late adoption of cryptocurrencies, several analysts believe that this might be an investment for his upcoming space programme, reported Business Insider.
Soaring Stock Prices
After Tesla made this announcement, its stock prices soared from 1.3 percent to 863.4 on Monday, 8 February,
Not only Bitcoin Prices but Grayscale Bitcoin Trust (GBTC), which tracks Bitcoin price movements, too, soared 21 percent.
Meanwhile, Digital Payment Platform PayPal rose to 4.7 percent , Square SQ, American Financial Service shot up to 8.15 percent and Riot Blockchain, Bitcoin Mining firm, soared to 40 percent, reported Investors.com.
Elon Musk: A Gamechanger
Musk is popularly known for promoting cryptocurrencies on his Twitter feed. Recently, he supported Dodgecoin, another cryptocurrency, and it led to a 50 percent growth after several media houses covered the news.
According to CoinMarketCap DATA, the push by Musk brought Dogecoin's market value to $10 billion (approximately Rs. 72,901 crores) on Monday.
Similarly, on 27 January 2021, after Musk tweeted about GameStop, its prices of its shares rose to more than 60 percent in after-hours trading.
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