The price of bitcoin rose above $ 47,000 on Tuesday, based on earnings following news that electric carmaker Tesla has invested $ 1.5 billion in cryptocurrency and could accept it as a future payment for products.
After reaching a record nearly $ 44,000 on Monday, bitcoin prices BTCUSD,
reached $ 45,000, $ 46,000 and $ 47,000 later that evening, according to CoinDesk. Prices were last traded at USD 47,651 on Tuesday.
Tesla TSLA has caused the recent rise of bitcoin
regular filing with the Securities and Exchange Commission on Monday. He revealed that Tesla purchased $ 1.5 billion in bitcoin in January and intends 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 liquid or not upon receipt. ”
Read: Musk’s Tesla says it has invested $ 1.5 billion in bitcoin, sending the cryptocurrency to record levels of nearly $ 44,000
As 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 have questioned Tesla’s move, given the volatility of the cryptocurrency, as well as the share prices of the electric car manufacturer.
Even though the price of Bitcoin has increased fivefold in the last year, it could continue to fall, Ipek Ozkardeskaya, a senior analyst at Swissquote, told clients in a note. “The high volatility of Bitcoin will therefore inevitably inject some volatility in Tesla’s revenue and reduce the predictability of the company’s performance.”
Bitcoin earnings so far have increased by 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,
is down by about 3% and the price of crude oil CL.1,
increased by 20%.
Read: Should I buy dogecoin? Why cryptocurrency prices are rising – but risky