Bitcoin's Tesla-driven price rally loses power

While the trading action was calmer, there is still a fierce debate over whether Tesla’s $1.5bn investment in Bitcoin will lead to other companies following suit

Elon Musk's Tesla invested $1.5bn in Bitcoin this week, driving the cryptocurrency's price to a record $48,000. File picture: Britta Pedersen-Pool/Getty Images

The frenzied rally in Bitcoin has lost momentum after prices hit a new all-time high of $48,000, following electric carmaker Tesla investing in the cryptocurrency this week.

The cryptocurrency pulled back, trading up 2.9% at about $46,000. Prices are still up over 30% since the beginning of February.