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Breaking: BTC Price Hits New ATH With Tesla Purchasing $1.5 Billion of Bitcoin

Highlights

    The price of Bitcoin has surged to a new all-time high above $42,000 as an SEC filing revealed that Tesla has bought $1.5 billion of BTC in January.

Elon Musk is Set to Take Bitcoin to Mars

As per today’s SEC filing, Tesla revelead that it has acquired $1.5 billion worth of bitcoin. According to the filing, Tesla updated its investment policy in the month of January in order to expand its cash on hand and maximize returns.

Its policy says that it may invest its reserves into digital assets, gold, gold ETFs and other assets. It was with this new policy in mind that it invested heavily into Bitcoin.

The filing added that :

“Digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties.” Tesla said they view Bitcoin as highly liquid.

Tesla said it would start accepting payments in bitcoin in exchange for its products as well. That would make Tesla the first major automaker to accept bitcoin as payment.

Bitcoin Price Hit New ATH: Rally May Hit above $45K

As the news broke, the price of bitcoin instantly rose by around 7% to more than $43,000 per coin. The move upwards pushed Bitcoin’s market cap up to $767.4B, or 61.64% of the total cryptocurrency market cap. At its highest, Bitcoin’s market cap was $758.5B

The narrow trend of Bitcoin price in the recent past had created a misty cloud over the path towards $50K. However, many analysts still predicted the bull run would continue once Bitcoin price is done with correction.

One of the popular analysts, Michael van de Poppe predicts a bullish trend which may hit $37,000 initially and rally further towards new All-Time high.

According to the analysts, the current levels of Bitcoin price at $36,544.09 were the crucial levels to break to rally as high as above $37,000. And if it further breaks these levels, a new all-time high above $45,000 is imminent. Conversely, if the bitcoin price rally flips, the price may revisit levels around $34,000.

Fictitious Bitcoin breaks out Appeared

The bitcoin price was trending in between a narrow range and attempting very hard to rally above the levels. The recent DOGE price rally assumed to have fueled by some external factors led to a massive explosion in the crypto space. Therefore, a similar boost was required for the BTC price to retest the new levels.

In the mean-time, the Tesla CEO, Elon Musk changed his Twitter bio to Bitcoin and within moments, Bitcoin price broke the channels and rallied high. 

DOGECOIN and bitcoin

The most surprising event was, within no time Elon Musk changed his bio, nearly $258.17 million worth of bitcoin short positions were liquidated according to Bloqport

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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