Bitcoin blows past 45,000 and reaches a high of $ 48,000 driven by Tesla’s investment

Electric-car maker Tesla has invested 1.5 billion in cryptocurrency and the price of Bitcoin jumped above $ 48,000 on Tuesday after news that it could accept the products as future payments.

After reaching a record near 44,000 on Monday, the price of Bitcoin BTCUSD,
+ 2.78%
Hit સિ 45,000, 46 46,000 and 47 47,000 later that evening, according to Synedesk. Prices hit a high of 48,226 at the beginning of Tuesday and then pulled back to $ 46,450, according to Coindesk.

The new update for Bitcoin is the Tesla TSL. ,.
+ 1.31%
Regulatory filing with the Securities and Exchange Commission on Monday. It reveals that Tesla acquired 1.5 billion bitcoins in January and plans to accept them “as a form of payment for our products in the near future, subject to applicable law and initially on a limited basis, whether we can liquidate after receipt or not.” ”

Read: Musk’s Tesla says it has invested 1.5 1.5 billion in Bitcoin, sending the cryptocurrency to record levels close to 44,000.

It’s just like Musk has recently been endorsing cryptocurrency on his Twitter account.

For Bitcoin loyalists, this was a big step taken by a large company to allow them to invest and make payments in digital currency. But on the other hand, some analysts questioned Tesla’s move, citing the volatility of the cryptocurrency, as well as the share prices of electric car makers.

Even if the price of Bitcoin has increased fivefold in the past year, it could break down, Ipek Ozkardekaya, a senior analyst at Swissquot, told consumers in a note. “High volatility in the value of Bitcoin will therefore inevitably lead to a certain volatility in Tesla’s revenue, and lower the company’s performance forecast.”

Bitcoin’s year-to-date gain is over 60% in 2021. That’s the opposite of a 4% increase in the S&P 500 SPX,
+ 0.74%
And a gain of 8.5% for the Nasdaq Composite Index COMP,
+ 0.95%,
When Gold GC100,
+ 0.65%
Around 3% and crude oil prices are below CL..1.
+ 0.29%
Is above 20%.

Read: Should I buy Dojecoin? Why cryptocurrency prices are rising – but risky