The price of bitcoin rose above $ 47,000 on Tuesday, based on gains on the news that electric car maker Tesla has invested $ 1.5 billion in the cryptocurrency and may accept it as future payment for products. After hitting a record high of close to $ 44,000 on Monday, bitcoin prices BTCUSD, + 4.91% reached $ 45,000, $ 46,000 and $ 47,000 later that night, according to CoinDesk. Prices last traded at $ 47,651 on Tuesday.
What triggered the new bitcoin surge was a Tesla TSLA, + 1.31% regulatory filing with the Securities and Exchange Commission on Monday. It revealed that Tesla acquired $ 1.5 billion in bitcoin 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 may or may not settle upon receipt. “Read: Musk’s Tesla says he invested $ 1.5 billion in bitcoin, sending the cryptocurrency to record highs near $ 44,000 That’s because Musk has recently been expressing his support for cryptocurrencies on his Twitter account. For the bitcoin faithful 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 automaker’s share prices. Even if the price of bitcoin were to multiply by five over the past year, it could still collapse, Ipek Ozkardeskaya, a senior analyst at Swissquote, told clients in a note. “High volatility in the value of Bitcoin will inevitably inject some volatility in Tesla’s revenue and the predictability of the company’s performance will decrease. ”Bitcoin’s annual profit has risen more than 60% in 2021. That continues ra 4% increase for the S&P 500 SPX, + 0.74% and an 8.5% gain for the Nasdaq Composite Index COMP, + 0.95%, while the GC00 gold, + 0.64% is down around 3% and Crude prices CL.1, + 0.33% have risen 20%. Read: Should you buy dogecoin? Why cryptocurrency prices are rising but risky