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| Bitcoin breaks the $ 47,000 mark for the first time |
After Tesla invested in the cryptocurrency, the cryptocurrency increased its profits in Asia and Bitcoin hit record highs on Tuesday.
Tesla (Tesla) announced in its 2020 annual report that Bitcoin made its biggest daily percentage gain overnight in more than three years.
Bitcoin rose 2.5% on Tuesday to a record high of $ 47,565.86 and has risen 61% so far.
In the cryptocurrency staggering rally in early January, backed by Tesla's announcement that it had bought $ 1.5 billion of Bitcoin, prices reached $ 45,000 and $ 46,000, respectively, in less than an hour Monday night. And $ 47,000.
The $ 45,000 mark should be a milestone, but with the value of cryptocurrencies so far increasing by 67%, the increase in cryptocurrencies made this an afterthought.
The likely reason for the spike spike is that a group of Asian traders have awakened the news from Tesla and there is no resistance above $ 45,000.
These may be the direct drivers behind the sudden rise in the value of cryptocurrencies, but they are not the only reason behind the sharp rise in Bitcoin.
As the Federal Reserve and central banks around the world invest trillions of dollars in financial markets to boost economies affected by the Coronavirus, more and more large investors have turned to digital currencies as a potential hedge against inflation.
Tesla has joined publicly traded companies including MicroStrategy, which are funneling money into Bitcoin. Given the price of the new token, it is clear that some investors feel that this is only the beginning.
Many analysts believe this is just the beginning of a broader takeover of company names to enter the cryptocurrency space.
As more and more investors are buying and holding Bitcoin for a long time, the supply of cryptocurrencies continues to decline.
According to reports, around 78% of the total amount of Bitcoin issued could be lost or retained. This allows future market participants (including major investors like PayPal and Square) to share less than 4 million Bitcoins.
With its recent gains, Bitcoin's market cap ($ 895 billion) once again surpassed Tesla ($ 818.4 billion) after it surpassed its market value for the first time on Monday.