Last year in autumn, PayPal provoked growth of the BTC by introducing a new service. Today, we’ll tell you how the first cryptocurrency reached a new peak thanks to an American car-maker Tesla. Let’s get started right away.
On February 8th, the United States Securities and Exchange Commission (SEC) announced via its website that Elon Musk’s company had bought the BTC for 1.5 billion USD. Sounds good, doesn’t it?
How did the market react?
That very day, the price of the Bitcoin (BTC/USD) set a new all-time high – 46395.7 USD per coin. Just feel the scale of Tesla’s influence: the BTC leaped up by 19.41% overnight.
More importantly, the growth continued: when this article was being prepared, a new high of 46767.1 USD was reached. This means that since the information appeared on the SEC’s website, the BTC had grown by 20.4%. Conversely, the quotations of Tesla (NASDAQ: TSLA) lost 3.3%.
What’s Tesla’s goal?
At the beginning of this year, the carmaker made some changes in its investment policy. According to the updated document, Tesla can invest in digital currencies, ETFs, gold, and other assets.
The management doesn’t only want to diversify the capital – which amounts to over 19 billion USD – but also increase the profit brought by it. They even promised that would soon make it possible to pay for electric cars in Bitcoins.
What does Musk think about the crypto?
The businessman spoke sarcastically about the BTC many times, comparing the coin to traditional money and calling it almost the same crap.
However, in December 2020, Reuters noticed a Twitter conversation on the BTC between Musk and MicroStrategy CEO Michael Saylor.
That time, the head of the car-making company was given some sort of advice: Saylor stated that converting a part of Tesla’s capital in the BTC would pay back generously sometime in the future.
It’s been just a month and a half since mister Saylor and mister Musk talked on Twitter, and we hear that Tesla invests 1.5 billion USD in the BTC. Seems like they never ignored Saylor’s advice.
Regardless of all the skepticism, high risks due to the volatility of crypto, no regulative legislation, and cyber-attacks, the head of the carmaker did get tempted by crypto investments.
Analysts think that other companies from the S&P 500 list might follow Tesla, which will let the BTC go on growing steadily and quickly. Which level will it have reached by the end of February? Share your opinion in the comment below.