$ 1.5 billion invested: Tesla lets Bitcoin price explode

Monday, February 08, 2021

Invested $ 1.5 billion
Tesla lets Bitcoin price explode

Tesla boss Musk makes no secret of his enthusiasm for cryptocurrencies. In the past few days, his tweets have given some currencies a boost. Now it is known: The carmaker has not only invested itself, but also wants to accept Bitcoin payments soon. The course takes off.

The US electric car manufacturer Tesla is relying on the crypto currency Bitcoin on a large scale. As announced by CEO Elon Musk, Tesla is investing $ 1.5 billion (1.25 billion euros) in the digital currency. The value of Bitcoin had risen sharply in recent months – at the beginning of January it had climbed to over 40,000 dollars.

Tesla's commitment to Bitcoin is giving the oldest cyber motto a tailwind. It rose by more than 15 percent to a record high of $ 43,744.43 and was heading for the largest daily profit in barely a year. Musk had already made his stance on the currency clear on Twitter a few days ago.

"That Tesla boss Elon Musk is a friend of the cryptocurrency should be known," said analyst Timo Emden from Emden Research. "The fact that Tesla is now investing on a large scale in the number one cryptocurrency leaves investors on cloud nine." Musk had given both Bitcoin and other internet currencies a boost with positive tweets in the past few weeks.

"Nothing can stop the rise of Bitcoin now," said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. "The next stop is at $ 50,000, then it's toward $ 65,000." However, some Tesla investors could be concerned about the disclosure of the Bitcoin investment, warned Neil Wilson, chief analyst of the online broker Markets.com. After all, the cyber motto is very prone to fluctuations. The electric car builder is thus adding risks to its balance sheet.

An important reason for the upswing in recent months was the announcement by the payment service PayPal in the fall that it would allow account holders to use cryptocurrency. The idea behind the digital currency is a currency that exists independently of states, central banks and monetary policy. Unlike traditional currencies, digital means of payment are not controlled from a central point, and bookings do not have to be confirmed by a central point.