Tesla Will Accept Bitcoin, Price Tops $44.5K

Tesla (NASDAQ: TSLA) founder Elon Musk, who frequently talks about Bitcoin (BTC), will accept bitcoin as a legal form of payment for Tesla products in the near future, disclosed it invested $1.5 billion in the largest digital currency. Tesla ended 2020 with $19 billion in cash and cash equivalents.

Bitcoin bulls capitalized on the news, pushing cryptocurrency price to a new all-time high of $44800 level and the largest crypto coin is up 13% in the last twenty-four hours. Tesla said the bitcoin acceptance will be limited initially.

bitcoin price

Tesla stated in filing:

We expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”

Elon Musk is Pushing Bitcoin Price

Last week, Elon Musk supported cryptocurrency in Clubhouse audio app and predicted:

Bitcoin is really on the verge of getting broad acceptance by conventional finance people.”

The market participants have been crediting Tesla Founder for creating an upside momentum in bitcoin and dogecoin price over the last few weeks through tweets.

Musk added the #bitcoin hashtag to his Twitter account bio two weeks ago, a move that optimized bulls sentiments and pushed price significantly higher. In the Clubhouse chat, he said:

I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin.”

Investors are closely following Elon Musk’s moves and tweets. SEC has previously charged Musk for his market-moving tweets regarding Tesla stock price. He is entirely responsible for making big price movements in cryptocurrencies over the past few weeks, creating a lot of wealth for long and losses for people who are shorting the coin.

Siraj Sarwar - Lead Analyst
@tradethedayfx
Siraj Sarwar has been performing analysis on the stock market, equity research and general business consultation. He regularly contributes articles on economics, commodities, and equities to the world's leading websites, including Trade the Day, SeekingAlpha, TheStreet, and MSN.
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