The largest cryptocurrency, bitcoin, surged to a record high of over $44,000 following the news that Tesla has invested $1.5 billion in the digital asset and expects to start accepting it as payment.
Bitcoin soared fifteen percent to trade at $44,141, closing in on an all-time high reached in early January 2021. Tesla founder Elon Musk said recently that while he’s a bit “late to the party,” he is now a supporter of the digital currency.
The appointed US electric car maker Tesla confirmed in its annual SEC filing that it has acquired $1.5 billion worth of bitcoin, and said it may also accept the currency as a form of payment for its products in the near future.
That would make Tesla the first major automaker to accept bitcoin as payment. The company said it bought the bitcoin for “more flexibility to further diversify and maximize returns on our cash.
Tesla shares were up more than two percent in pre-market trading. The company warned investors of the volatility of bitcoin’s price in its SEC filing. But technically this is a confirmed breakout that should eventually take Bitcoin to $63K.
Bitcoin enthusiasts point to the digital asset as a hedge against inflation and store of value as concerns are rising that Joe Biden’s $1.9 trillion virus relief package may risk overheating the economy.
Bitcoin’s free float, a measure of how many tokens are available to trade, has dropped to 13% of supply, which is the lowest since 2014, according to Chainanalysis. This suggests that Bitcoin available to buy remains scarce despite record prices.
Analysts say another reason behind cryptocurrencies’ growth could be celebrities attracting attention to doge-coin. Over the weekend, rapper Snoop Dogg and KISS bassist Gene Simmons sent several Dogecoin tweets, pushing prices of the crypto to a record high.
RT. com / ABC Flash Point Crypto Currency News 2021.