Bitcoin’s Price Hits New High: Is this the right time to start trading?
Tesla has announced, in a recent filing with the US Securities and Exchange Commission (SEC) that it has invested about $1.5 billion in Bitcoin. Tesla buying $1.5 billion worth of bitcoin and announcing that they will now accept Bitcoin as a payment method has helped push the price of the most well-known cryptocurrency above $40,000.
The US automaker, keeping the filing in mind, has stated that it updated its investment policy in January to provide Elon Musk’s company with more flexibility to further diversify and maximize returns on its $1.5 billion investment. Tesla also plans to invest a portion of their cash reserves into gold bullion, digital assets, gold exchange-traded funds and other specified assets in the future as part of the policy.
An investing of $1.5 billion in Bitcoin was not the only big news. As mentioned previously, Tesla has also stated in their report that they will soon start accepting payments in the cryptocurrency for its products on a limited basis. This will make Tesla to become the first automaker to do so. Purchasing Bitcoin worth $1.5 billion will provide the company with the liquidity that will be needed once they start to accept cryptocurrency payments.
According to Tesla’s fourth quarter and full year financial reports, it had over $19bn in cash and cash equivalents at the end of last year. These stats tell us that the purchase of $1.5 billion in Bitcoin is a pretty big investment, even for a company as big as Tesla.
Bitcoin surged to new highs and reached a price of $45,000 after the company’s announcement and at the time of writing. However, it is no surprise that at the same time, Tesla’s shares had also gone up by over two percent after their announcement.
CEO of Tesla, Elon Musk, has long been a supporter of the power of digital currencies and not so long ago he used Twitter to share with everyone his thoughts on bitcoin. More recently though, Elon Musk added “#bitcoin” in his bio on the social network. It is worth noting that by doing just that, he helped increase the price of Bitcoin by as much as 20 percent.
Elon Musk has also helped in increasing the price of the another cryptocurrency Dogecoin. Dogecoin was created by an Adobe software engineer and an IBM software engineer, Jackson Palmer and Billy Markus, not so long ago. Elon Musk has stated, in a recent tweet, that “Dogecoin is the people’s crypto”.
Is it a good time to start trading Bitcoin?
Bitcoin is on the rise as its value in price continues to grow. PayPal has also started accepting cryptocurrency payments. This means that the active users and online merchants who use PayPal can now use and accept cryptocurrency payments. More and more online businesses are now accepting Bitcoin and other cryptocurrencies as a payment method. It wouldn’t be wrong to say that wide adoption of Bitcoin is finally
here. It might also bring some stability in the world of crypto trading.
Cryptocurrencies are known for their volatile nature. The traders try to use the price swings and the volatility to their advantage. They try to make profits by selling when the price goes higher and buying when it is low. However, it is not as easy as it sounds. There are many different factors that can impact Bitcoin’s price. Trading and investing in Bitcoin may prove to be very risky.
Experience and knowledge of the crypto trading world can help you make better decisions. However, if you are thinking about entering a market as a crypto trader, we would recommend you to use an automated trading platform, like Bitcoin Prime. Such platforms will use algorithmic trading strategies and take into account numerous factors before performing trades automatically for the users. You could take advantage of an
automated trading platform and profit as the Bitcoin’s market continues to grow.
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