Bitcoin breaks price record after Tesla announces billionaire purchase | Finance

Tesla announced on Monday (08) the purchase of $ 1.5 billion in bitcoin (BTC). Elon Musk’s company caused the cryptocurrency to skyrocket and hit a new price record, topping $ 44,000. In addition, the electric car developer is also expected to accept payments in digital currency soon.

Elon Musk (Image: Peter Tsai / Flickr)

In a new document declared today to the United States Securities and Exchange Commission (SEC), Tesla said that in January 2021, the company updated its investment policy. The objective is to provide more flexibility while diversifying and maximizing returns to maintain its adequate operating liquidity.

“We invested a total of $ 1.5 billion in bitcoin under this policy and we can acquire and maintain digital assets sporadically or in the long term. In addition, we hope to start accepting bitcoin 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 on receipt, ”said Tesla.

After investment, bitcoin breaks price record

Bitcoin exceeds $ 44,000 and breaks new record (Image: Reproduction / CoinDesk)

Bitcoin exceeds $ 44,000 and breaks new record (Image: Reproduction / CoinDesk)

Earlier today, bitcoin was already operating at high levels, worth $ 39,000. A few hours later, after Tesla’s billionaire investment was released, the cryptocurrency shot to a new all-time high of $ 44,800, according to an index. CoinDesk.

The previous bitcoin price record was approximately $ 42,000, set on January 7. At the moment, the digital asset is subject to much speculation and divides public opinions.

Bank of America chief investment strategist Michael Hartnett said in a report that bitcoin could be the “worst of all bubbles”. Meanwhile, the digital currency is increasingly attracting the attention of institutional and retail investors. Large companies, such as Tesla, now invest in crypto while the market operates with less and less liquidity in the face of extremely high demand.

Elon Musk confirmed support for bitcoin

Bio of Elon Musk on Twitter (Image: Reproduction)

Bio of Elon Musk on Twitter (Image: Reproduction)

The announcement of a billion dollar investment in cryptocurrency by Elon Musk’s company came two weeks after the tycoon publicly confirmed his support for bitcoin. In a conversation on the popular Clubhouse audio platform on January 29, Tesla’s owner was asked about his vague positions in the digital currency.

“I think bitcoin is a good thing and I’m an advocate,” replied Musk, who also acknowledged that he must be careful about his positions on digital currencies: “I have to watch what I say here, because some of these things can really move the market ”.

The question came about because Musk had switched his Twitter bio to #bitcoin, without further explanation. Until then, his position on cryptocurrencies was very vague, but each small sentence of the tycoon was able to generate speculation and influence the price of multiple digital assets.

Dogecoin returns to Musk’s Twitter subject

The biggest example of this is not even bitcoin itself, but dogecoin (DOGE), a cryptocurrency created in 2013 based on a meme that Elon Musk adopted as his favorite. Since December 2020, the billionaire has been publishing some tweets about the digital currency that caused the asset to appreciate extremely.

However, the businessman has already made it clear that he sees DOGE only as a meme. “I occasionally make jokes about dogecoin, but in reality they are meant to be just jokes,” he said. His most recent statement was a comic “instructive” video posted on Twitter about the cryptocurrency:

With information: The Guardian

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