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Bitcoin sets a new historical record at more than $43,000. And the BTC owes this surge once again to Elon Musk. The manufacturer Tesla announces the acquisition of the cryptocurrencies for 1.5 billion dollars.
Too few institutional players are participating in the Bitcoin market to maintain its value above the $30,000 threshold. Guggenheim investment director Scott Minerd said recently.
But with the support of a technology giant and a famous entrepreneur, Bitcoin can climb above $40,000. The price of cryptocurrencies jumped by nearly 15% on Monday, February 8.
And this sudden surge in Bitcoin can be explained by a major decision by Tesla, the car manufacturer whose stock market valuation is now reaching record highs. The automaker is reporting to the SEC that it has just acquired a $1.5 billion worth of BTC.
After the words, Elon Musk, its CEO and founder, takes action. “I think Bitcoin is a good thing at this point,” he said officially in an interview a week earlier. A few days earlier, the mere mention of #bitcoin on his Twitter profile had already caused the $8,000 encryption-active to take off.
With Tesla’s announcement, Bitcoin now sets a new all-time high of over 43,000 dollars. And the company is thus in line with the policy of another publicly traded technology company: MicroStrategy.
Tesla, in turn, believes that Bitcoin offers “greater flexibility to further diversify and maximize the return” on its cash. But the company could still give cryptocurrencies a boost.
The manufacturer could also accept BTC payments for its products in the future. Tesla would then become the first major car manufacturer to accept payments in cryptocurrencies. All of which would further promote the democratization of digital currencies.
Tesla’s decision is a thunderbolt. Bitcoin now represents a very significant part of its liquid assets. CNBC recalls that the company held $19 billion in cash and equivalents at the end of 2020.
However, with 1.5 billion dollars in Bitcoin, Elon Musk will have to be more careful on Twitter. The SEC could, as in the past, slap him on the wrist if he publishes messages that could be considered as price manipulation.
According to a study by Blockchain Research Lab, Elon Musk has, on at least two occasions, had a major influence on the value of BTC and Dodge Token. The study observed “huge increases in trading volumes and significant positive abnormal returns” following two of his tweets.