The price of Bitcoin hit a new all-time high on Monday as investors reacted to news that Tesla had purchased $1.5 million of the cryptocurrency, and that the car maker planned to accept it as payment.
Shortly after the news broke, Bitcoin crossed the $44,000 mark for the first time. The milestone comes on the heels of an extraordinary run for Bitcoin, which has doubled in price since December, and has recovered from a tumble in late January that saw it briefly fall to around $30,000.
Bitcoin surges to a record after Tesla says it's invested $1.5 billion and will start to accept BTC as payment. https://t.co/5McipWOi6S pic.twitter.com/94NIPEcpZw
— Tim Stenovec (@timsteno) February 8, 2021
Bitcoin surges to a record after Tesla says it's invested $1.5 billion and will start to accept BTC as payment. https://t.co/5McipWOi6S pic.twitter.com/94NIPEcpZw
The Tesla news also set off a flurry of reactions on Twitter as market watchers tried to digest the implications of one of the world’s most valuable companies betting on Bitcoin—and of its charismatic CEO Elon Musk embracing the crypto industry.
Katie Haun, a crypto expert at VC firm Andreessen Horowitz, predicted Tesla’s move could be just the beginning as more firms follow its example, and that of fintech giant Square, by adding Bitcoin to their balance sheet:
Big news for the crypto space this morning with @Tesla buying BTC for part of its treasury. What company or companies do you think will be next? https://t.co/rski67y2LH
— Kathryn Haun (@katie_haun) February 8, 2021
Big news for the crypto space this morning with @Tesla buying BTC for part of its treasury. What company or companies do you think will be next? https://t.co/rski67y2LH
Meanwhile, banking giant RBC also raised such a possibility—suggesting that the world’s most valuable company could soon make a big foray into crypto:
"If [Apple] decides to enter into the crypto exchange business (multi-billion dollar industry) we think the firm could immediately gain market share and disrupt the industry (while simultaneously making the USA a leader in crypto for the next 10-20 years)."—@RBC's latest on Apple pic.twitter.com/yijfBC8Ju0
— RobertHackett.eth (@rhhackett) February 8, 2021
"If [Apple] decides to enter into the crypto exchange business (multi-billion dollar industry) we think the firm could immediately gain market share and disrupt the industry (while simultaneously making the USA a leader in crypto for the next 10-20 years)."—@RBC's latest on Apple pic.twitter.com/yijfBC8Ju0
Others on Twitter noted that Monday’s news came as the culmination of Musk dropping weeks of cryptic hints that he was poised to embrace cryptocurrency—hints that included references to a novelty currency called DogeCoin whose value Musk helped inflate:
In retrospect, it was inevitablehttps://t.co/X5OWK4DRFK https://t.co/RvIbvx9u4v
— Hunter Horsley (@HHorsley) February 8, 2021
In retrospect, it was inevitablehttps://t.co/X5OWK4DRFK https://t.co/RvIbvx9u4v
Musk spent the last few weeks sending public traffic away from Bitcoin and into a crypto that has absolutely zero value driving the price of Bitcoin down. Musk made $200,000,000 off his Bitcoin deposit just this hour. Elon hates you guys. The sooner you realize that the better. https://t.co/tosgXKxorS
— Ethan Embry (@EmbryEthan) February 8, 2021
Musk spent the last few weeks sending public traffic away from Bitcoin and into a crypto that has absolutely zero value driving the price of Bitcoin down. Musk made $200,000,000 off his Bitcoin deposit just this hour. Elon hates you guys. The sooner you realize that the better. https://t.co/tosgXKxorS
Others simply marveled about the size of the bet Musk had placed on Bitcoin:
Tesla buying Bitcoin in itself is bullish.
— Joseph Young (@iamjosephyoung) February 8, 2021
But the number is insane.
Tesla bought almost 10% of its $19 billion cash holding.
Not 1%, 10%. This is the most bullish part.
Tesla buying Bitcoin in itself is bullish.
But the number is insane.
Tesla bought almost 10% of its $19 billion cash holding.
Not 1%, 10%. This is the most bullish part.
There was also ample speculation Tesla’s strategic reasons for moving into Bitcoin. One popular theory is the company is counting on the price continuing to climb, and that accepting it as payment could pad its balance sheet in the long term.
Tesla’s foray into Bitcoin also produced a debate about whether it was hypocritical of Musk—a proponent of clean energy—to support a cryptocurrency that takes an enormous amount of energy to maintain:
Telsa buying $1.5B bitcoin says everything about how much Elon Musk really cares about the environment. In other words, he doesn't.
— Amy Castor (@ahcastor) February 8, 2021
Telsa buying $1.5B bitcoin says everything about how much Elon Musk really cares about the environment. In other words, he doesn't.
Tesla's mission is to "create an entire sustainable energy ecosystem."
— Pomp 🌪 (@APompliano) February 8, 2021
They just bought $1.5 billion of Bitcoin.
You can now retire your misinformed argument that Bitcoin is bad for the environment.
Tesla's mission is to "create an entire sustainable energy ecosystem."
They just bought $1.5 billion of Bitcoin.
You can now retire your misinformed argument that Bitcoin is bad for the environment.
Finally, many in the meme-centered world of cryptocurrency chose to forego in any serious analysis and simply delight in the fact one of the world’s most prominent CEOs had decided to embrace Bitcoin:
Elon Musk, "I am late to the party, but I am a supporter of bitcoin" pic.twitter.com/LoxxYcPEQL
— FTX App (@ftx_app) February 1, 2021
Elon Musk, "I am late to the party, but I am a supporter of bitcoin" pic.twitter.com/LoxxYcPEQL
Elon Musk: *supports bitcoin*
— Node (@thenodeteam) February 1, 2021
Bitcoin price: 📈📈📈
Us: pic.twitter.com/XAFXp41YLF
Elon Musk: *supports bitcoin*
Bitcoin price: 📈📈📈
Us: pic.twitter.com/XAFXp41YLF
Buckle up! Tesla bought $1.5 billion worth of #bitcoin, sending the price past $43,000 for the first time ever. We are going fast to the moon! 🚀📈 @elonmusk @Tesla @bitcoin New #ATH pic.twitter.com/4BAKtatA62
— Lynx Art Collection (@LynxCollection) February 8, 2021
Buckle up! Tesla bought $1.5 billion worth of #bitcoin, sending the price past $43,000 for the first time ever. We are going fast to the moon! 🚀📈 @elonmusk @Tesla @bitcoin New #ATH pic.twitter.com/4BAKtatA62