Bitcoin prices surged to a record high after Tesla announced its investment of $1.5 billion in the crypto asset. Bitcoin’s price rose by 14%, reaching an all-time high of above $44,000. Meanwhile, Tesla (TSLA) shares jumped by 2%. On Tuesday, Bitcoin’s price reached $48,216.
Tesla’s decision to accept bitcoin as a form of payment has also boosted crypto assets’ demand. “A combination of traders in Asia just waking up to the Tesla news combined with a lack of resistance levels above $45,000 were possible causes for the sudden gap upwards,” reported coindesk.com. “Tesla joins publicly traded companies including Michael Saylor’s MicroStrategy that have steered corporate money into bitcoin (BTC, +19.51%).”
On Monday Tesla disclosed that the company invested $1.5 billion in bitcoin which is 10 percent of Tesla’s cash reserves. “This is the largest corporate purchase of bitcoin ever,” reported Yahoo Finance.