The price of bitcoin rose above $ 47,000 on Tuesday, based on earnings after news that electric car maker Tesla invested $ 1.5 billion in the cryptocurrency and can accept it as future payment for products.
After reaching a record high of almost $ 44,000 on Monday, bitcoin prices BTCUSD
reached $ 45,000, $ 46,000 and $ 47,000 later that night, according to CoinDesk. Prices were last traded at $ 47,651 on Tuesday.
Stimulating the new wave of bitcoin was a Tesla TSLA,
regulatory filing with the Securities and Exchange Commission on Monday. He revealed that Tesla acquired $ 1.5 billion in bitcoins in January and plans to accept it “as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we can or not to settle on receipt. ”
Read: Musk’s Tesla says he invested $ 1.5 billion in bitcoin, sending the cryptocurrency to record levels close to $ 44,000
It is because Musk recently expressed support for cryptocurrencies on his Twitter account.
For bitcoin believers, it was a monumental move by a large company to invest in digital currency and allow payments. But on the other hand, some analysts 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 multiplied by five last year, it could still fall, Ipek Ozkardeskaya, senior analyst at Swissquote, told customers in a note. “The high volatility in the value of Bitcoin, therefore, will inevitably inject some volatility into Tesla’s revenue and decrease the predictability of the company’s performance.”
Bitcoin’s year-to-date gain is more than 60% in 2021. This is against a 4% increase for the S&P 500 SPX,
and an 8.5% gain for the Nasdaq Composite Index COMP,
while GC00 gold,
fell about 3% and crude oil prices CL.1,
increased by 20%.
Read: Should I buy dogecoin? Why cryptocurrency prices are rising – but it’s risky