Tesla Buys Bitcoin, BTCUSD Shoots to $47,500
On Feb 8, the Bitcoin price rose to a new all-time high of $47,500 after their 10-K SEC filings from Tesla revealed their $1.5 billion investment in BTC. The firm also announced plans of accepting BTC as a means of payment. Their decision to invest in the digital asset was approved by the Audit Committee of the Board of Directors. Under their new policy, Tesla will, from time-to-time, hold digital assets and will soon open up for BTC payment.
Tesla is the most valuable automotive company in the world. Its founder, Elon Musk, is the world's richest. He is interested in cryptocurrency, even declaring himself the CEO of Dogecoin—an altcoin. His tweets on Dogecoin pumped the coin, propelling its valuation to the top 10, ahead of IOTA, Tron, Monero, and other public projects. However, the decision for Tesla to invest in BTC is monumental. It is the legitimization of BTC as a digital asset that public companies can hold as part of their investment strategy and hedge against inflation. Interestingly, the announcement follows news that SpaceX representatives attended Bitcoin for Corporations virtual event organized by Michael Saylor, the MicroStrategy CEO.
Impact on the BTC Price:
Bullish. The BTC price rose to over $47.5k. It may continue to pump harder this week following Elon Musk and Tesla's legitimization of crypto and Bitcoin. It is estimated that at least $25 billion will flow to crypto, and specifically BTC, by the end of 2021.
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