Bitcoin surged to an all-time high after Tesla said it’s invested $1.5 billion and will begin accepting the cryptocurrency as a form of payment.
Prices jumped 10% to $42,595 as of 12:57 PM in London. Tesla made the announcement as part of an update to its investment policy, according to a filing.
It’s another sign that the cryptocurrency is gaining widespread traction as a type of investment. Enthusiasts often tout the digital asset as a hedge against inflation and store of value in a world awash with stimulus and rampant central-bank money printing.
“If retail and institutional interest continues to grow over the next month, Bitcoin could target the $45,000 level,” said Edward Moya, a senior market analyst at forex broker Oanda Corp.