Palo Alto’s Tesla announces $1.5bn bitcoin bet as crypto assets soar to record highs

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Palo Alto’s Tesla announces $1.5bn bitcoin bet as crypto assets soar to record highs

In what has been a move that may prove to be a game-changer for digital assets, Tesla Inc., the Palo Alto, California-based e-vehicle maker said earlier on Monday that it had invested an eye-propping $1.5 billion in bitcoin, sending Bitcoin more than 15 per cent higher to a new record trough of $44,712.

On top of that, as Tesla Inc, the world’s largest automotive behemoth by far, had also pledged to an acceptance of bitcoin as a payment method for its units and related services in a near term, other smaller digital assets that usually move in alignment with bitcoin, surged to their record highs as well with Ripple last trading 7.18 per cent higher to $0.44 and Litecoin gaining 9 per cent to $163.5.

Ethereum in tandem rocketed 7.43 per cent to a record peak of $1,715.3.

Bitcoin jumps after Tesla announces billion-dollar bitcoin bet

In point of fact, latest move from Tesla Inc. to invest as many as a whopping $1.5 billion in bitcoin came against the backdrop of a month-long discussions in Twitter, while about ten days earlier, Tesla Inc.

Chief Executive Elon Musk, the world’s richest man on record to-date, catapulted crypto prices higher by simply adding a bitcoin ‘hashtag’ on his Twitter profile page. Although the Tesla boss had pulled down the tag from Twitter bio a few days later, but continued to post tweets related to bitcoin and other smaller digital assets, in particular dogecoin, setting up a swift shift in attitude towards the digital assets for his 46 million followers in Twitter.

Apart from that, later last year, Musk had also trumpeted possibilities of transforming “large transactions” of Tesla Inc balance sheets into bitcoin, a few days after which the original cryptocurrency, Bitcoin had stormed past a key $20,000 psychological barrier for the first time on December 20.

Later the largest crypto asset in the world doubled up in valuations in less than three weeks. Bitcoin has been up about 50 per cent this year following a meteoric rally of 300 per cent in 2020.