Although Elon Musk has been talking about Dogecoin for months, according to Tesla’s newest announcement, the company has only invested in Bitcoin, purchasing around $1.5 billion worth of the digital asset.
According to an official document from the Securities and Exchange Commission (SEC) Tesla has invested an aggregate of $1.5 billion in Bitcoin and plans to accept the digital asset as a payment method in the near future.
The announcement had a massive impact on Bitcoin price which reached $45,000 for the first time ever destroying the last resistance level of $42,000. Tesla is the 5th largest public company by market capitalization with over $800 billion. Elon Musk is also the richest man in the world which means Tesla investing in Bitcoin is perhaps the biggest news ever for the digital asset. Within one hour, Bitcoin’s market capitalization jumped by $100 billion, funnily enough reaching $818 billion, putting the asset higher than Tesla’s.
Where is Bitcoin price headed to now?
After hitting $44,800 on Binance, Bitcoin price has seen a brief pullback down to $42,700 and it’s currently trading at $43,600. Binance and other exchanges suffered significant outages with investors not being able to trade for several minutes.
At this point, it’s hard to predict where Bitcoin is going next as not only Teslas has invested a significant sum of money but also stated that it might acquire other digital assets in the future.
In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, 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.
The next significant price level for Bitcoin is the psychological level at $50,000. As long as the digital asset stays above the 26-EMA level on the daily chart, the uptrend will remain intact.