Bitcoin Jumps Past $47,000 after Tesla's Investment
Bitcoin reached new heights on Monday after Tesla said it invested $1.5 billion in the cryptocurrency — the company has become the biggest one yet to back bitcoin.
After Tesla made the disclosure with the Securities and Exchange Commission on Monday, Nasdaq detailed how the cryptocurrency soared over 20%, with prices jumping up from $45,000, to $46,000, and eventually topping $47,000 for the very first time.
The electric car company even said it may start accepting payments in the cryptocurrency for Tesla vehicle purchases.
What companies like Tesla's and even Apple's investments mean for bitcoin
"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," said Antoni Trenchev, managing partner and co-founder of Nexo in London. "Tesla has now paved the way."
Trenchev further explains that he predicts at least 10% of S&P 500 companies will invest in bitcoin before the end of 2022.
For instance, if a big company such as Apple joined the cryptocurrency market, its shares can jump even higher, as RBC Capital Markets notes. RBC even details that Apple could join in the near future thanks to its Wallet app, as the app has already dipped its toes into the world of financial services with the Apple Card since 2019.
Not only would this investment prove huge for Apple, and bitcoin, but it would also place the U.S. as a market leader in cryptocurrency within the next 10 to 20 years.
"If the firm decides to enter into the crypto exchange business, we think the firm could immediately gain market share and disrupt the industry," RBC added.
Bitcoin has only become stronger and stronger since January, and with key players such as Tesla, and potentially Apple joining its ranks of investors, it will only continue to soar and gain mass adoption.
"I think bitcoin is really on the verge of getting broad acceptance by sort of the conventional finance people,” Musk said on Clubhouse earlier this month, according to The Block.