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Bitcoin powers to new high as Tesla takes it mainstream


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Bitcoin powers to new high as Tesla takes it mainstream

By Stanley White and Tom Westbrook

 

2021-02-09T081527Z_1_LYNXMPEH180IC_RTROPTP_4_CRYPTO-CURRENCY-TESLA-EXPLAINER.JPG

FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8, 2021. REUTERS/Dado Ruvic/File Photo

 

TOKYO (Reuters) - Bitcoin extended gains on Tuesday to a record high as the afterglow of Tesla Inc's investment in the cryptocurrency had investors reckoning it would become a mainstream asset class for both corporates and money managers.

 

Bitcoin has more than doubled over two months as institutional investors search for alternative wealth stores and retail traders ride the wave. Monday's leap after Tesla's announcement was its largest daily rise in more than three years.

 

It climbed to a new peak of $48,216 late in the Asian afternoon on Tuesday. Rival cryptocurrency ethereum had struck a record high of $1,784.85 in the early morning.

 

Shares of companies that provide trading platforms for bitcoin and the technology to "mine" the cryptocurrency surged in China, South Korea, and Australia, and big computer chip making companies such as SK Hynix also rose.

 

The U.S. dollar slumped against most currencies.

 

Analysts figuredTesla's announcement that it had bought $1.5 billion in bitcoin and that it would take the cryptocurrency as payment for cars is part of a larger shift as companies and big investment houses follow small traders into the asset.

 

"While you can now buy a Tesla with bitcoin, I wouldn't suggest doing so," said Michael Bucella, partner at crypto investment firm BlockTower on CNBC. "We're in a position where these are the earliest phases of an allocation to bitcoin from the institutional and corporate community."

 

Bitcoin is already up 62% this year, on top of a 300% rally last year, as investors search for alternatives to the greenback because of the U.S. Federal Reserve's 0% interest rates.

 

Central bankers and regulators, particularly in China, are also starting to embrace issuing their own digital currencies for everyday use, in a major break from the conventional workings of global finance.

 

"Digital currencies, it seems clear to us, are going to be an increasing part of financial architecture very broadly and potentially portfolios moving forward," Ben Powell, APAC chief investment strategist at BlackRock's Investment Institute, said on CNBC.

 

"There isn't just news in the U.S. with the bitcoin situation, but in China we've got a rollout of China's digital currency with so-called 'red packets'."

 

Tesla boss Elon Musk has long been a cryptocurrency fan - he has talked them up online - but Tesla's hard currency investment came as a surprise that has put a rocket under the sector.

 

GRAPHIC: GRAPHIC-Bitcoin hits record high on Tesla investment - https://graphics.reuters.com/CRYPTO-CURRENCY/TESLA CRYPTO-CENRRENCY/bdwpkngldvm/Bitcoin.png

 

Even dogecoin, a joke cryptocurrency with a dog as its symbol, has seen its value turbocharged after Musk mentioned it on Twitter. It has jumped by 13% in the past day, according to CoinMarketCap.

 

China's Feitian Technologies Co Ltd, which makes technology for digital payments, rose 4.47% on Tuesday. Beijing will issue 10 million yuan ($1.55 million) worth of digital currency to residents that can be used during the Lunar New Year holiday starting on Thursday, domestic media reported.

 

In addition, Chinese are expected to send billions of yuan to each other during the weeklong holiday via chat apps such as WeChat - digital versions of traditional 'red packet' envelopes filled with cash. 

 

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-- © Copyright Reuters 2021-02-09
 
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14 minutes ago, snoop1130 said:

"Digital currencies, it seems clear to us, are going to be an increasing part of financial architecture very broadly and potentially portfolios moving forward," Ben Powell, APAC chief investment strategist at BlackRock's Investment Institute, said on CNBC.

Hold on folks it will be a bumpy ride as the Cryptos start to bounce now, volatility has always been an issue, but be aware of the pump and dump schemes.  You might pick a winner or you might get burned.  Remember to never invest more than you can afford to loose.  Glad I got into the Crypto market years ago, and have been a Hodler.  Have sold and made money, of course paid taxes, but then like stocks you never know how the market will be.  One day in the future the Crypto market will be regulated, but for now the sky is the limit as shown by Bitcoins price today and the way Ethereum is slowly moving upwards. 

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IMPOSSIBLE>..

 

TVF members said Bitcoin was overvalued at 1000, 2000, 3000, 4000......

 

Now I'm sure this will be the high and the CRASH will come....yes???

 

They say Musk is already up 500 MILLION USD..

 

I'm sending him a message now....  "don't buy!!! oh, wait.... give me!!!! please!!!!"  

 

signed,

 

guru

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2 hours ago, Ventenio said:

They say Musk is already up 500 MILLION USD

 

Whilst what they should say is that Tesla is already up.  Musk is speculating with what actually belongs to the share holders - not his personal wealth.

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4 hours ago, Ventenio said:

TVF members said Bitcoin was overvalued at 1000, 2000, 3000, 4000......

It is massively overvalued indeed, its real price should be less than 10'000.

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2 hours ago, fdsa said:

It is massively overvalued indeed, its real price should be less than 10'000.

 

Zero is less than 10,000, so that sounds right to me.

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wait until more companies start transferring their books over to btc. that will make this fad go away i'm sure of it. 

 

21 million. minus like 5. minus 1 for the tosh. don't leave very many for everyone else. throw greyscale in there. the rowing twins. a few other big companies. 

 

get your tulips right here folks.  

 

2.5 billion kids under say what 25. most of them will never give a toss about gold. 

 

 

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2 hours ago, Oxx said:

 

Zero is less than 10,000, so that sounds right to me.

 

while zero sounds right to ignorant or uneducated people, those who possess some intelligence, knowledge or even just a common sense might realize that the true price of one Bitcoin is about 8000-10000 USD currently.

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Sounds horrible, but thank God for Covid.   Was really annoyed by all of the missed vacations last year, but financially this has been so worth it.   

 

My 2 cents for 2021... buy yourself something that you've wanted for awhile and then stop trading.  Cold storage all the way.  

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On 2/9/2021 at 11:40 PM, jobsworth said:

Did not Elon Musk famously say some time ago that he did not own any bitcoin and would not do so in the future?

 

A few years ago he said he had never brought any but had 0.25 btc that a friend had given to him.

 

Welcome aboard its great to have forward thinkers such as him supporting it!!

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On 2/10/2021 at 7:18 AM, Oxx said:

 

Zero is less than 10,000, so that sounds right to me.

Silicon Valley's love affair with Bitcoin stepped up a gear on Wednesday after Twitter said it could follow Tesla's lead with a major investment in the digital currency. Twitter's finance chief Ned Segal said the firm is watching Tesla's move closely and had long considered buying Bitcoin. - Telegraph

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