Tesla ditches Dogecoin and buys $1.5 billion in Bitcoin instead pushing prices to new all-time highs

  • Bitcoin price has surged to $45,000 following a $1.5 billion investment from Tesla.
  • Tesla also expects to be accepting Bitcoin as a form of payment in the near future.
  • BTC bulls have cracked a critical resistance level at $42,000 and aim for $50,000.

Earlier today, Tesla announced a $1.5 billion investment in Bitcoin under a new policy and also stated that they are expecting to accept BTC as a form of payment soon. Of course, Bitcoin price reacted extremely well and pushed to new highs at $45,000. 

Many exchanges suffered significant outages, including Binance, which was partially down for several minutes. Elon Musk has been talking about Dogecoin for the past several months, however, it seems that the business magnate has ditched the meme cryptocurrency and only bought Bitcoin.

Bitcoin price surges by 17% thanks to Tesla

On the daily chart, Bitcoin price had a breakout from a descending triangle pattern on February 2 with a price target of $45,000, which was just hit in the past few hours thanks to a big announcement from Tesla.

btc price

BTC/USD daily chart

However, given the magnitude of the announcement, Bitcoin price could continue surging even more. Tesla also stated that its prepared to accept BTC payments in the near future, which should increase Bitcoin’s use cases even more. 

btc price

BTC Holders Distribution

Since December 26, 2020, the number of large BTC holders with 1,000 to 10,000 coins has increased from 2,120 to 2,393 currently, which indicates the current Bitcoin rally has a lot of strength behind it. 

btc price

BTC MVRV (30d)

However, this recent surge also created a significant spike in the MVRV (30d) for Bitcoin climbing to 21.7% and slowly approaching the danger zone above 30%, which usually indicates an asset is on the verge of a correction.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Weekly Forecast: BTC price surges despite threat of crash to $36k

Bitcoin price shows lackluster performance after the recent crash, giving rise to the credibility of the run-up to $50,000. As the September 24 daily candlestick bathes in red, the chances of an uptrend continue to diminish.

More Bitcoin news

XLM Price Prediction: Stellar traps bulls as it targets $0.195

Since Wednesday, the Stellar (XLM) price has been paring back losses, but price action has already started to fade on XLM. Bulls cannot push the price above $0.30, and XLM price has startedto form a bull trap.

More Stellar Lumens News

Polkadot Price Prediction: DOT will hit $40 by October

Polkadot (DOT) bears are scrambling to cash in on their profits as price action for DOT reverses quite rapidly, with bulls overtaking control and pushing price action back toward levels achieved before the correction began. 

More Polkadot News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

China’s central bank cracks down on illegal financial activities from overseas cryptocurrency exchanges. The recent announcement marks the People’s Bank of China's (PBoC) strongest move against cryptocurrency mining and trading to date. 

More Cryptocurrencies News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast