- Tesla has bought $1.5 billion worth Bitcoin to maximize returns on cash
- According to the firm, Bitcoin can be considered as a highly liquid asset
- Elon Musk has now entered the cryptocurrency market
- According to the current market trend, the price of BTC is expected to slide downwards
Bitcoin has also attracted Elon Musk, the founder of Tesla. On Monday, following a United States Securities and Exchange Commission (SEC) filing, it was revealed that Tesla has invested $1.5 billion in Bitcoin. According to the filing, the purchase was made for more flexibility to diversify further and maximize returns on Tesla’s cash. Additionally, with the reveal of the purchase of the leading crypto-token, Tesla also revealed its plans of starting to accept BTC as a method of payment.
Bitcoin is being favored by Tesla as a highly liquid asset
Tesla has purchased Bitcoin according to a 10-K form filed with the US SEC. The decision to invest was approved by the Audit Committee of Tesla’s Board of Directors. The filing documents also mentioned that crypto assets have been in the past and may continue to be highly volatile. The statement also included that due to volatility, the investment includes various associated risks and uncertainties. The electric car manufacturing firm views Bitcoin as highly liquid and added standard risk statements to the filings.
On the other hand, under the new policy, the firm may acquire the token designed by Satoshi Nakamoto as a payment form soon. Indeed, with subject to applicable laws and initially on a limited basis, the exchange of Tesla products in terms of BTC would be great for the entire cryptosphere.
Elon Musk has entered the cryptocurrency market
Billionaire Elon Musk was supporting cryptos in recent months. Moreover, the recent price rally of Dogecoin (DOGE) was also sparked by him. Elon’s comments on Twitter have been observed pumping the crypto bubble, as he has more than 46 million followers on Twitter. Recently Musk hosted a poll on Twitter regarding DOGE coins where 71.3% of votes were received in favor of Dogecoin. The recent reveal raised many questions around Musk following his current behavior of manipulating prices in the crypto market by encouraging more people to buy.
The recent price performance of the BTC
At press time, bitcoin is trading at the price level of $44,073.41, creating a new all-time high record. The price has surged by more than 13% over the last twenty-four hours. Indeed, over the last seven days, Bitcoin has surged by more than 28%. With the price surge, the token’s total market cap has also surged by more than 12% to $814.26 billion. However, following the current crypto market trends, it’s expected that the price may slide downwards to the price level of $27,000 in the short-term.
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