The price of bitcoin rose above $ 47,000 on Tuesday, building on profits following news that electric car maker Tesla has invested $ 1.5 billion in the cryptocurrency and may accept it as a future payment for products.
After hitting a record close to $ 44,000 on Monday, bitcoin prices hit BTCUSD,
according to CoinDesk later raised $ 45,000, $ 46,000 and $ 47,000. Prices last traded at $ 47,651 on Tuesday.
The new boom for bitcoin was a TESla TSLA,
regulatory filing with the Securities and Exchange Commission on Monday. It revealed that Tesla acquired $ 1.5 billion in bitcoins in January and plans to adopt them ‘as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis. basis, which we may or may not liquidate upon receipt. ”
Read: Musk’s Tesla says it has invested $ 1.5 billion in bitcoin and sent the cryptocurrency to record levels of close to $ 44,000
This is because Musk recently voiced support for cryptocurrencies on his Twitter account.
For the bitcoin faithful, it was a monumental step by a large company to invest in the digital currency and allow payments. But on the other hand, some analysts have questioned Tesla’s move, given the volatility of the cryptocurrency, as well as the share prices of the electric car maker.
Even if the price of bitcoin has multiplied by five in the past year, it could still crash, Ipek Ozkardeskaya, senior analyst at Swissquote, said in a note to clients. “The high volatility in the value of Bitcoin will therefore inevitably inflict a certain volatility in Tesla’s revenue and reduce the predictability of the company’s performance.”
The annual profit of Bitcoin is in 2021 by more than 60% higher. This is at a 4% increase for the S&P 500 SPX,
and a gain of 8.5% for the Nasdaq Composite Index COMP,
while gold GC00,
decreases by about 3% and crude oil prices CL.1,
is 20% higher.
Read: Should I buy dogecoin? Why cryptocurrency prices are rising – but risky