Bitcoin Blasts Above $44,000 After Elon Musk’s Tesla Buys $1.5 Billion

Elon Musk, Bitcoin in the background
Elon Musk, Bitcoin in the background

After struggling for one month, Bitcoin (BTC) has finally soared to a new all-time high. The largest cryptocurrency reached $44,000 on Monday — when Tesla (NASDAQ: TSLA) revealed that they bought $1.5 billion worth of Bitcoin. The digital token’s previous record was $41,950.

According to a filing with the Securities and Exchange Commission (SEC) on Monday — Tesla announced that it bought $1.5 billion worth of BTC. Furthermore, the electric vehicles manufacturer said it bought BTC for “more flexibility to further diversify and maximize returns on our cash”.

Following the news, the cryptocurrency soared 15% on Monday, and Bitcoin’s market capitalization reached an astonishing $816,004,948 — surpassing both Facebook (NASDAQ: FB) and Tesla. The company added that they may invest more in cryptocurrencies in the future. That being said, Tesla is the first automaker to accept BTC as payment.

In recent tweets, Elon Musk CEO of Tesla endorsed both BTC and Dogecoin. Musk added Bitcoin to his Twitter bio on January 29 — pushing the cryptocurrency’s price 20% higher. Additionally, Musk sent “Dogecoin to the moon” on Sunday, following a poll he published on Twitter. The recent moves by Musk may suggest that he is gaining more interest in cryptocurrencies.

Bitcoin is Becoming Widely Accepted

Bitcoin has been on a rally since December. The cryptocurrency surged to a record-breaking $40,000 in January. However, the rally was disrupted on January 10, and the digital token suffered a 30% correction. Since then, Bitcoin has been struggling in a $30,000 resistance range. Still, with Tesla endorsing Bitcoin, the worst may finally be over.