Tesla announced today it purchased a whopping $1.5 billion in Bitcoin sending the price of the crypto soaring. Find out what drove the leading car manufacturer’s decision and the impact on Bitcoin traders.
Tesla Buys $1.5 Billion In Bitcoin
While best known for its state of the art cars, the Californian-headquartered Tesla today made the news for publishing details of its $1.5 billion Bitcoin purchase. The company also announced it intends to start accepting Bitcoin payments, which would make it the first major car manufacturer to accept the volatile cryptocurrency.
In documents filed with the Securities & Exchange Commission (SEC), Tesla explained the decision would provide “more flexibility to further diversify and maximize returns on our cash.”
Elon Musk On Bitcoin
Of course, this latest news adds to a string of Bitcoin-related antics from the Tesla CEO who only weeks ago was criticised for causing a spike in the price of Bitcoin and Dogecoin following supportive messages on Twitter. In fact, Musk added the hashtag #bitcoin to his Twitter bio just two weeks ago, a move which is said to have caused a 20% increase in the price of the digital coin. Just two days later he posted on social media forum Clubhouse “I do at this point think Bitcoin is a good thing, and I am a supporter of Bitcoin.”
Bitcoin Passes $44,000
Following Tesla’s announcement, the price of the crypto surpassed $44,000. Tesla shares also rose by 2.5% in premarket trading. The price of Bitcoin has fluctuated significantly in recent months, spurred on by votes of confidence from the likes of Elon Musk.
For savvy traders, the market volatility means an opportunity to generate profits. Many top brokers are offering a multitude of powerful trading tools with competitive spreads and generous leverage levels. Of course, investors should also be wary when trading Bitcoin as many of its peaks have been quickly followed by troughs. Take a careful approach to risk management when trading Bitcoin and other cryptos.