After Tesla’s announcement of investing $1.5 billion in Bitcoin, the cryptocurrency surged to an all-time high. Tesla became the biggest company yet to back Bitcoin.
After Tesla made the revelation in a regulatory filing, Bitcoin jumped as much as 15%. The prices exceeded $44,000 for the first time. Elon Musk’s Tesla also announced it would begin accepting Bitcoin as a form of payment for its electric cars.
Notably, Tesla is one of the world’s most influential companies and its support for Bitcoin has come as a significant boost for the cryptocurrency which has been often criticized by policymakers.
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“The world’s richest man allocating $1.5 billion of his company’s treasury to Bitcoin speaks volumes about the magnitude at which crypto gains institutional adoption,” Antoni Trenchev, managing partner and co-founder of Nexo in London said. “Tesla has now paved the way,” he added.
Trenchev also said that he expects at least 10 per cent of S&P 500 companies will be invested in Bitcoin by the end of the year 2022.