Crypto News

Bitcoin Hits $56.6K After Musk Enables BTC Payment Option for Tesla Vehicles

Tesla stock is now directly tied to the price of Bitcoin

Yerevan (CoinChapter.com) — Tesla knows how to accumulate Bitcoin the right way.

Instead of absorbing the flagship cryptocurrency from retail markets, the world’s leading electric carmaker has decided to earn it. The details are in the latest Elon Musk tweet below.

Yes, now anyone in the US — and soon outside the US — can buy Tesla cars with their Bitcoin. Mr. Musk has ensured to put the flagship cryptocurrency, known for its erratic underlying price volatility, on the same pedestal where payment processing platforms like Visa, MasterCard, American Express, and PayPal stand. Why? Because the billionaire entrepreneur has decided to operate a Bitcoin node directly, without relying on any centralized service (even PayPal allows Bitcoin transactions now).

“Tesla is using only internal & open source software & operates Bitcoin nodes directly,” announced Mr. Musk. “Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.”

The “fiat currency” part shows Mr. Musk’s commitment to treat Bitcoin same as the US dollar. By not deciding to convert his Bitcoin proceeds to the US dollar, the Tesla founder has further verified the cryptocurrency’s growing store of value status, especially after the Federal Reserve Chairman Jerome Powell’s remarks in which he questioned BTC’s role in payments.

Bitcoin Price Pops

The market loves when Tesla comes out in support of cryptocurrencies in general. The pre-market session in London was the same. Traders raised their bids for the benchmark BTC/USD pair after Mr. Musk’s tweet went viral across global media. The pair rose to $56,666 on Wednesday after falling to as low as $53,141 in the previous trading session.

No one dares short BTC/USD when Tesla is the bull.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin pops higher after Mr. Musk’s tweets. Source: BTCUSD on TradingView.com

Zhu Su, the CIO/CEO of crypto-focused investment firm Three Arrow Capital, said that Tesla’s growing influence over an emerging cryptocurrency market would inspire more corporates to join the Bitcoin bandwagon, especially against the prospects of rising inflation and the US dollar’s devaluation.

“Many other companies may elect to accept BTC as payment for big-ticket purchases, thereby rapidly increasing its use in day-to-day commerce and lionizing its prestige,” the executive said.

The BTC/USD exchange rate now eyes an extended move towards $58,000, a level that coincides with its short-term descending trendline resistance.

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Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

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