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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ripple sets the stage for 40% advance

XRP price has retraced to a crucial support barrier at $1.42. Ripple price shows the promise of a bull rally that could create new yearly highs. This move comes after Ripple tested a critical support barrier. 

More Ripple News

Chainlink’s VRF functionality gains another integration, but LINK price crashes

Chainlink’s VRF functionality is integrated by Upshot to appraise NFTs in real-time. Coinversation Protocol announced the use of Chainlink price feeds to secure its platform. 

More Chainlink News

CME expands suite of crypto derivatives products by launching micro Bitcoin futures

The Chicago Mercantile Exchange (CME) has launched a new futures product as demand continues to grow in the cryptocurrency space. The new micro Bitcoin futures contract by CME will be one-tenth the size of a Bitcoin.

More Crypto news

Grayscale parent firm DCG to increase allocation in GBTC to $750M amid steep discount

The parent company behind Grayscale, Digital Currency Group, has decided to ramp up the number of shares to acquire in the cryptocurrency fund.

More Crypto 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