Bitcoin pushed back its all-time high on Tuesday and surpassed $ 45,000, propelled by news of a massive $ 1.5 billion investment in the first cryptocurrency by Tesla, which also plans to accept it as a payment method.
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At around 8am Montreal time, bitcoin was trading for $ 45,445.27, after hitting a new high of $ 48,215.82 around 2am Montreal time, according to data compiled by Bloomberg.
“Elon Musk has brought bitcoin the strongest support in cryptocurrency history,” said Michael Hewson, analyst at CMC Markets.
The boss of Tesla, the richest man in the world, had frequently touted the merits of bitcoin and cryptocurrency on his Twitter account, but this is the first time that a group the size of Tesla has invested part of its cash in bitcoin.
Private companies are usually reluctant to swap their cash dollars into such a turbulent asset as bitcoin.
“The high volatility of bitcoin will inevitably lead to volatility in Tesla’s earnings, and make the company’s performance less predictable,” notes Ipek Ozkardeskaya, analyst at Swissquote.
Another American company, software publisher MicroStrategy, has bought more than $ 1 billion worth of bitcoin in recent months.
But this midsize company is in a very different position from that of Wall Street giant Tesla: MicroStrategy stock has become a way to bet on the price of bitcoin.
Up 587% over one year to 1,041 dollars at Monday’s close, its price follows more the evolution of the cryptocurrency than the news of the company.
By announcing in December the purchase of additional bitcoins, the CEO of the group had said that he considered “the management of our cash flow as an explanation for the performance of our action”.
Cryptocurrency players therefore welcome the arrival of a larger company on the market: the purchase of Tesla “does not completely reshuffle the cards, but reinforces the idea that bitcoin has its place in the treasuries of company, ”said Patrick Heusser, broker at the cryptocurrency specialist Cryptobroker.
Bitcoin and other cryptocurrencies are not, however, unanimous: Janet Yellen, Joe Biden’s new Treasury secretary, recently warned that cryptocurrencies were “mainly used” for financing illicit activities and that the government should ensure that they do not become a means of laundering dirty money.