Bitcoin hit an all time high above $48,000 on Tuesday after Elon Musk’s Tesla announced a $1.5 billion investment in the largest cryptocurrency. Bitcoin rose as much as $48,142 in Asian trading.
Tesla’s disclosure Monday sent the price soaring. The company also said it would begin accepting the digital token as a form of payment for its electric cars.
Elon Musk had initially added “#bitcoin” to his Twitter profile page, which moved the price up.
In a stock market filing on Monday, February 8, Tesla said it “updated its investment policy” in January and now wanted to invest in “reserve assets” such as digital currencies, gold bullion or gold exchange-traded funds.
Bitcoin surges past $44,000 after his company announced buying it yesterday.
It said it had already bought $1.5bn of Bitcoin and could “acquire and hold digital assets” in the future.
“Moreover, we expect to begin accepting Bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis,” it said.
Musk announced last week that Bitcoin was “on the verge” of being more widely accepted among investors.
“I think we will see an acceleration of companies looking to allocate to Bitcoin now that Tesla has made the first move,” said Eric Turner, vice-president of market intelligence at cryptocurrency research firm Messari.
“One of the largest companies in the world now owns Bitcoin and by extension, every investor that owns Tesla, or even just an S&P 500 fund, has exposure to it as well.”
This endorsement of Bitcoin by a mainstream firm has forced investors to reimagine their portfolio.