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Bitcoin Soars to All-Time High After Tesla Confirms $1.5 Billion Purchase

February 8, 2021 at 13:25 by Andrew Moran

Bitcoin futures skyrocketed on Monday after the news broke that automaker Tesla Motors acquired a vast amount of the peer-to-peer decentralized virtual currency bitcoin and the company will start accepting payments in the cryptocurrency for its products. The news sent prices an all-time high.

February bitcoin futures surged $5,945.00, or 15.64%, to $43,960.00 per coin at 12:10 GMT on Monday on the Chicago Mercantile Exchange (CME). Bitcoin is coming off a 16% gain last week, bringing its year-to-date rally to around 50%.

According to a filing with the Securities and Exchange Commission (SEC), Elon Musk’s company purchased bitcoin for “more flexibility to further diversify and maximize returns on our cash.” The filing also revealed that it would begin accepting payments in bitcoin in exchange for its products “in the near future” and on a “limited basis, which we may or may not liquidate upon receipt.”

Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term

The move makes Tesla the first major automaker to take bitcoin as payment.

Musk has been championing cryptocurrencies on Twitter in recent weeks, posting positive messages about bitcoin and dogecoin. Musk has been largely credited for the massive gains in these virtual currencies. This is also a considerable purchase since Tesla possesses more than $19 billion in cash and cash equivalents as of the end of 2020, according to its most recent corporate filing.

Tesla stock was up in 2.27% in pre-market trading, topping $871 per share.

Where does this leave bitcoin prices? Can bitcoin soon test $50,000? It was recently reported that Mike McGlone, a senior commodity strategist at Bloomberg, believes the cryptocurrency could reach $50,000 as more investors move away from gold to digital assets.

In other cryptocurrencies, ethereum jumped 4.42% to $1,704.08 per coin. Ripple’x XRP slipped 2.03% to $0.432973. Stellar’s XLM tumbled 5.21% to $0.390825.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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