Tesla Sparks Bitcoin Prize Will Pass $ 47,000 on Road to $ 50,000

Bitcoin’s price today is just over $ 47,000, a new record for the largest cryptocurrency in the world. Its market capitalization is currently about $ 855 million – about $ 40 million more than the value of all shares in Tesla.

Speaking of Tesla, the manufacturer of electric cars has played an extraordinary role in the production of today Bitcoin price push. Early in the morning in U.S. trading, Bitcoin sold for about $ 39,000, about $ 3,000 below its previous record.

Then came the news that Tesla had bought $ 1.5 billion in Bitcoin. According to data from CoinMarketCap, the price moved within $ 4,000 within an hour. After flattening for a few hours, it continued upward, never before hitting $ 44,000, $ 45,000, $ 46,000 and (briefly) $ 47,000 barriers.

This means that Tesla’s stake in BTC has increased by a few hundred million in just 24 hours – not a bad return. It also means that a price point close to $ 50,000 – seemingly unlikely a few months ago – is within reach.

Tesla is not the first company to put Bitcoin in its books. MicroStrategy, a business intelligence firm led by BTC proselytizer Michael Saylor, spent $ 1.15 billion to buy Bitcoin, and even sold secured debt to buy more of the digital asset. Its 71,079 BTC is worth about $ 3.2 billion as of today.

MicroStrategy’s aggressive strategy is attributed to its contribution to the 2020-21 Bitcoin Bull run, which paved the way for other companies. For example, Square, the payment firm run by Twitter CEO Jack Dorsey, bought 4,709 Bitcoin for $ 50 million in early October, when the coin cost about $ 10,600. The price of Bitcoin has more than quadrupled since then.

Tesla, on the other hand, has bought near the peak of the market – a sign of confidence that there is still enough room for the bulls to manage, especially if large-cap companies follow its lead.

They might be considering it. An analyst at RBC Capital Markets, the investment wing of the Royal Bank of Canada, today suggested that computer software and hardware company Apple should buy a crypto-currency and keep it in reserve while developing its Apple Wallet into a stock market that can compete with Coinbase.

Mitch Steves wrote that a $ 1 billion investment from Apple would be less than a week’s cash flow, enough to start a wallet and to exchange.

“The wallet initiative appears to be a clear opportunity for a billion dollars (potential for more than $ 40 billion in annual revenue with limited R&D),” he wrote, as reported by Bloomberg.

And it’s not just companies. Miami Mayor Francis Suarez, who wants to make the city of Florida a global hub for crypto, announced this morning that he is working on a resolution to invest municipal funds in Bitcoin.

He plans to meet with the city commission on Thursday to ‘get the ball rolling’.

Better hurry, Mr. Mayor. The price is rising faster than the tide on South Beach.