Bitcoin Vs Dollar: Bitcoin was last up 15.93 per cent at $45,719.2
Bitcoin Vs Dollar: Bitcoin achieved a fresh all-time high record on Tuesday, February 9, trading over $47,000 and climbing as high as $48,143 against the US dollar after Elon Musk’s electric vehicle company Tesla Inc announced a $1.5 billion investment in the world’s largest cryptocurrency. Bitcoin surged as high as 6.3 per cent to $47,494 in Asian trading as investors reckoned that the virtual currency would become a mainstream asset class for both corporates as well as money managers. Ever since Tesla announced that it would soon accept bitcoin as a form of payment for cars, the cryptocurrency surged higher.
Bitcoin’s Rally In The Afterglow Of Tesla’s Investment: All You Need To Know
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 Even though bitcoin has witnessed a controversial journey ever since its launch and is still not considered legal by many central banks, Tesla’s investment is a big stride towards mainstream acceptance for the cryptocurrency, and it has set its price shooting higher as investors mull possibilities of other big companies to invest in or hold the cryptocurrency.
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Billionaire Elon Musk’s company Tesla said in a filing the decision to move nearly eight per cent of its reserves into bitcoin was part of its broad investment policy as a company aimed at diversifying and maximizing its returns on cash, including holding gold. According to Tesla, it has invested an aggregate $1.5 billion in bitcoin under the changed policy and could acquire and hold digital assets from time to time or long-term.
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The world’s most popular cryptocurrency has more than doubled over two months as institutional investors search for alternative wealth stores and retail traders ride the wave. After Tesla’s announcement, bitcoin’s giant leap on Monday, February 8, was its largest daily rise in more than three years. Bitcoin has witnessed a broader bull run since October 2020, ever since US-based online payment company Paypal allowed customers to make use of bitcoin on its network. Â
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The news of Tesla investing in bitcoin sparked heavy trading in cryptocurrencies and caused exchanges such as Coinbase, Gemini, Binance to experience technical issues. Additionally, rival cryptocurrency ethereum achieved a record high of $1,784.85 in the early trade session today.
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The price of one bitcoin climbed to a peak of $48,216, which is almost enough to buy one of the best-selling Tesla vehicles, Tesla Model Y SUV. Bitcoin is already up 62 per cent this year, on top of a 300 per cent rally last year, as investors search for alternatives to the greenback because of the US Federal Reserve’s zero per cent interest rates. The US dollar slid against most currencies.
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Bitcoin has surged in value over the past year due to rising investor sentiment amid the COVID-19 pandemic. Investors see its as a hedge against inflation and are attracted to its tendency for quick gains. The virtual currency breached its earlier record of $42,000 in January 2021. On January 7, the total market value of all cryptocurrencies surged above $1 trillion for the first time.
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As a mode of payment, bitcoin is still considered less reliable due to its volatile nature, however, some central banks across the world are considering options to allow the issuance of digital currencies. Analysts believe that the cryptocurrency’s history teaches us to expect the unexpected.
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Almost quadrupling in value, the virtual currency surged exponentially since entering a four-digit value for the first time in 2013. In 2017, it went from about $1,000 to around $20,000. After crossing $42,000 mark last month, it touched $48,216 on February 9. Bitcoin was last up 15.93 per cent at $45,719.2 against the US dollar.
