Remember how a couple of weeks ago Tesla helped the BTC set a new all-time high? Now that the main cryptocurrency resumed growth, we can discuss certain advantages of such a decision of the US carmaker.
The BTC price sets a new record
On February 21st, the price of the digital currency set a new all-time high, rising over 57,000 USD. To be more precise, on Sunday it rose over 57,400 USD, growing by 2.7% overnight.
According to CoinMarketCap, an online platform about cryptocurrencies, since January 1st this year, the capitalization of Bitcoin has increased by over 524 billion USD and by now has reached 1.07 trillion USD.
Why are Bitcoin prices growing?
In February only, there were some pieces of news that pushed the BTC to more and more price records. The info that Tesla bought the BTC for 1.5 billion USD made the cryptocurrency sky-rocket over 46,000 USD.
Mastercard reports that in 2021 already it will be working with certain crypto, while BNY Mellon announces the development of a new hybrid platform for storing both traditional and digital assets – the BTC reacts by leaping over 48,000 USD.
Rising to 57,400 USD might be explained by the news that Purpose Bitcoin ETF (TSX: BTCC) has been launched – the first Bitcoin-bound ETF in North America. The financial instrument has been launched in Canada – such a derivative has not yet been approved by the US SEC.
How did Tesla make over 1 billion USD on the crypto?
Let’s stick to facts: according to Bitcointreasuries, tesla earned 1.08 billion USD on the growth of the digital currency. What’s important: it’s much more than was earned by selling electric cars in 2020.
Have doubts? Here are just dry statistics. Tesla bought 48,000 Bitcoins, spending 1.5 billion USD. Now the price of the asset has increased to 2.58 billion USD. We have a difference of 1.08 billion USD, while electric car sales last year yielded 721 million USD. Fancy this!
The launch of the Canadian Purpose Bitcoin ETF made the BTC grow to 57,000 USD, setting a new record. Such an increase let Tesla earn 1.08 billion USD, which is more than it made in 2020 selling electric cars.
Since the beginning of the year, the capitalization of Bitcoin grew by over 524 billion USD, reaching 1.07 trillion USD. Analysts forecast that the uptrend in Bitcoin will stay thanks to a lot of interest towards the crypto yet to be embodied.