Bitcoin hits record levels as Tesla invests $1.5bn

At least 10% of S&P 500 companies will be invested in Bitcoin by the end of 2022.

Bitcoin surged to an all-time high after electric carmaker Tesla said it’s invested $1.5bn (€1.25bn), becoming the biggest company yet to back the controversial cryptocurrency.

Bitcoin jumped as much as 15% after Tesla made the disclosure in a regulatory filing, with prices exceeding $44,000 (€36,555) for the first time. Tesla also said it would begin accepting the digital token as a form of payment for its electric cars.

That Tesla, one of the world’s most influential companies, and billionaire Elon Musk have thrown their weight behind Bitcoin is a massive sign of support for the cryptocurrency, which has been criticised by policymakers for facilitating money laundering and fraud.

“The world’s richest man allocating $1.5 billion of his company’s treasury to Bitcoin speaks volumes about the magnitude at which crypto gains institutional adoption,” said Antoni Trenchev, managing partner and co-founder of Nexo in London. Trenchev said he expects that at least 10% of S&P 500 companies will be invested in Bitcoin by the end of 2022.

Predictions for Bitcoin’s possible long-term price range from more than €300,000 to zero. The token is designed to have a fixed supply of 21 million coins, underpinned by a digital ledger distributed across computer networks.

Bloomberg