New high for Bitcoin

New high for Bitcoin

Tesla’s investment in Bitcoin was part responsible for the crypto’s latest rally

The rally continues for the largest cryptocurrency in the world. Bitcoin rose to a fresh high, reaching a market capitalization that topped $1 trillion on Friday, February 19.

Part of its rally was caused by Tesla’s announcement that it had bought $1.5 billion worth of Bitcoin. According to its filing to the Securities and Exchange Commission, the US carmaker disclosed that it did that for “more flexibility to further diversify and maximize returns on our cash.”

According to experts, Tesla is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020.” However, it is unclear when or at what price it bought the Bitcoin or if it has sold it yet.

Moreover, Bitcoin’s surge was fueled because various mainstream investors and companies such as MasterCard Inc and BNY Mellon started to accept cryptocurrency as an investment and payment method.

Bitcoin traded on Sunday at $58,354, taking its weekly gain to around 20%. Year-to-date, it went up roughly 100%.

Sources: cnbc.com, reuters.com

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