Bitcoin price has hit a new all-time high of $47K on February 9th. The surge of over 20% is the result of Tesla’s $1.5 billion investment in BTC.
The crypto enthusiast billionaire Elon Musk is known for his tweets on cryptocurrencies like bitcoin and dogecoin. He recently put #bitcoin in his Twitter bio. This move brought 5000 USD surge in bitcoin price within hours. Bitcoin pump, this time around, is also fueled by Elon’s company.
Tesla, the well known electric car company, has allocated 7.7% of its cash in BTC. The investment is worth $1.5 billion. Bitcoin went to the moon after the revelation of this investment of Feb. 08th. The currency hit 46,794 on the same day.
What Is Next?
At the time of this writing, Bitcoin’s price is at $47, 018. It has surged by 20.60% in the past 24 hours.
Bitcoin price has hit record highs since the start of 2021. Institutional support, surging demands and diminishing supply, and crypto-friendly regulations in different countries have been the reason for bitcoin’s increasing value. However, every increase in value is followed by corrections. It will be the case this time as well.
The increase in bitcoin price brings euphoria in crypto circles. Some seasoned investors are quick to put money in BTC but get disheartened as soon as downward really starts appearing on the chart.
Bitcoin is a volatile currency. It moves positions quickly but not every red candle is a sign of bear market. Furthermore, remember that bitcoin was at $3k in March 2020. It has reached $47K in less than a year. Therefore, a fall of $5-10K is nothing compared to the rise.
We should all take the advice of Binance’s CEO in this scenario:
Do proper risk management
Diversify a bit
Only invest with money you don’t need urgently
Don’t invest with your next month’s rent
Expect some system issues
Don’t fall for scams
Be responsible to, and take responsibility, yourself
— CZ 🔶 Binance (@cz_binance) February 9, 2021