The leading cryptocurrency bitcoin has gained 1,150% from March 2020 lows as institutional investors search for alternative wealth stores and retail traders ride the wave. It traded at a few hundred dollars only five years back. Bitcoin soared by 20% after Tesla announced it had a $1.5 billion investment and that it would eventually take the cryptocurrency as payment for its cars. That was its largest daily rise in more than three years.
The price of bitcoin briefly jumped above $48,200.
One bitcoin’s price climbed to a peak of $48,216 — almost enough to buy one of the best-selling Tesla vehicles, the Tesla Model Y SUV. Rival cryptocurrency ethereum struck a record high of $1,784.85 on Tuesday. At the time of writing, a bitcoin is changing hands at just above $46,400. Musk, a well-known supporter of cryptocurrencies, foresees accepting the currency as a payment for Tesla cars. Analysts reckon this is a larger shift as companies and big investment houses follow small traders into the asset. Tesla CEO had earlier put “bitcoin” in his Twitter bio.
Tesla CEO believes bitcoin will see more acceptance from finance people.
Tesla CEO Elon Musk had earlier said that the leading cryptocurrency bitcoin is a “good thing” and that it is set to get mainstream attention. Musk went on to say that many of his friends have convinced him to buy bitcoin in the past, but he is “late to the party.” The billionaire CEO had also added bitcoin to his Twitter bio and posted, “In retrospect, it was inevitable,” possibly meaning that the bitcoin mention was sure to happen. It is being speculated that Tesla’s move into bitcoin could have a domino effect, and we might see other companies making similar moves.