Bitcoin price LIVE – Shares stabilise at $44,500 but wave of Elon Musk-style Silicon Valley cash may drive a new surge

Bitcoin price LIVE – Shares stabilise at $44,500 but wave of Elon Musk-style Silicon Valley cash may drive a new surge

THE price of Bitcoin has temporarily stabilised after Elon Musk's $1.5 billion saw the cryptocurrency's value rocket.

A single Bitcoin is currently worth $44,500 on the cyptocurrency markets as investors raced to take advantage of an inevitable post-Musk surge.

In a statement earlier this week, Tesla revealed it would soon accept payments in Bitcoin, and the world's richest man admitted the firm had made a massive investment of its own in the surging online currency.

Crypto-market watchers now believe a wave of Silicon Valley billion-dollar investments could spark another surge, with Twitter among several companies rumoured to be planning a Tesla-style share purchase.

Meanwhile another tweet from Musk sent another crytocurrency soaring after he described the once-mocked Dogecoin currency as "the future".

The coin, which began as a joke in 2013, has surged in value by 1,250% over the past year after a huge number of investors decided to simultaneously pump cash into the coin to make it a legit trading option.

Follow the latest Bitcoin and cyptocurrency news on our rolling live blog below..

  • Alice Peacock

    INVESTORS SHOULD CONSIDER GOLD, TOP MINER SAYS

    One of the world's leading gold miners has said the rapid rise of cryptocurrencies should be a prompt for investors to consider buying gold.

    Newcrest Mining Ltd. Chief Executive Officer Sandeep Biswas told Bloomberg TV that Bullion may "act as a bit of a hedge against the volatility of cryptos."

    While the two assets were distinct, Biswas said they were complementary; owning bullion could benefit cryptocurrency holders as it was more stable.

    “Gold is a different class of investment,” he said.

    “It’s a tangible asset: you can see it, you can touch it, you can feel it, you can mold it, you can make it into jewelry, whatever you want.”

  • Alice Peacock

    TWITTER CONSIDERING USE OF BITCOIN

    Twitter's chief financial officer has said the social networking service is considering whether to hold bitcoin on its balance sheet.

    In an interview with CNBC on Wednesday, Segal said the company had been looking at whether it could pay vendors or employees using the cryptocurrency.

    "We might consider whether we would be transferring dollars to bitcoin at the time of the transaction or if we wanted bitcoin on our balance sheet ready to complete that transaction," Segal said.

    The comments come just a couple of days after Elon Musk's Tesla Inc revealed the automaker had bought US$1.5 billion of the cryptocurrency.

  • Alex Winter

    EXPERTS SAY THEY'RE CONCERNED ABOUT MOVE

    Experts have also voiced concern about the difficulty of valuing the notoriously volatile cryptocurrency over the long-term after Tesla's move.

    "Elon Musk has exposed Tesla to immense mark-to-market risk," Peter Garnry, head of equity strategy at Saxo Bank, wrote in a research note.

    He was referring to an accounting method designed to measure the fair value of accounts – assets and liabilities – in order to provide a measure of current financial performance.

    Tesla did not respond to a request for comment.

  • Alex Winter

    A RISKY MOVE?

    More on that last story now.

    Shareholders have voiced concern that the investment by Tesla, which recently joined the benchmark S&P 500 stock index, could fuel more gyrations in the company's shares.

    "It will add volatility to the stock due to exposure to bitcoin," said King Lip, chief strategist at Baker Avenue Wealth Management, whose firm has owned Tesla shares since 2015.

    "This is better for bitcoin than it is for Tesla."

    Gary Black, former chief executive of Aegon Asset Management, has announced on Twitter that he's sold his shares in Tesla.

    He blamed this on the absence on a 2021 delivery target and the company's 'riskier' capital allocation strategy, and tweeted: "$TSLA has always been higher risk, but investing $1.5B in #Bitcoin makes it more risky."

  • Alex Winter

    INVESTORS QUESTION MUSK'S $1.5BN DECISION

    Tesla investors are questioning whether Elon Musk's $1.5bn outlay into bitcoin will be as good for the company as it has been for the cryptocurrency.

    Tesla's disclosure on Monday that it had moved nearly 8 per cent of its reserves into bitcoin sent the price of the cryptocurrency to all-time highs, up more than 16 per cent this week.

    However, Tesla's shares are down nearly 6 per cent.

    Others may yet follow Tesla's lead, with Twitter Inc's chief financial officer telling CNBC that the company has considered adding bitcoin to its balance sheet.

  • Tariq Tahir

    NOTHING STOPPING GENERAL MOTORS TAKING BITCOIN

    Chief Executive Mary Barra said if there is strong demand from customers to pay in bitcoin there’s nothing stopping the company doing that.

    Responding to a question about accepting bitcoin as payment for vehicles she said: “This is something we’ll monitor and we’ll evaluate.

    “If there’s strong customer demand for it in the future, there’s nothing that precludes us from doing that.”

    But unlike Musk, Barra said “we don’t have any plans to invest in bitcoin. Full stop there”.

  • Tariq Tahir

    BITCOIN ‘CONSUMES MORE ELECTRICITY THAN ARGENTINA’

    Bitcoin consumes more electricity annually than the whole of Argentina, Cambridge University researchers say.

    The cryptocurrency requires power-hungry, heavy computer calculations to verify transactions and analysis has found it consumes around 121.36 terawatt-hours (TWh) a year, the BBC reports.

    Michel Rauchs, researcher at The Cambridge Centre for Alternative Finance, has co-created the online tool that generated the estimate.

    It places Bitcoin’s electricity consumption above Argentina (121 TWh), the Netherlands (108.8 TWh) and the United Arab Emirates (113.20 TWh) – and it is creeping up on Norway (122.20 TWh).

  • Tariq Tahir

    BITCOIN ‘PRANKSTER’ OWNS UP

    A Reddit user who claimed be a Tesla insider who knew about its purchase of bitcoin has said his assertions were not true.

    The user's original post drew little attention when it appeared on January 2 but it received a second look on Wednesday after Tesla and CEO Elon Musk disclosed a $1.5 billion investment in the cryptocurrency .

    The user told the New York Post that he is in fact a prankster from Germany.

    “If you want to know the truth: I am a young German guy and I was on acid while I did this post in the last month," the Post quoted him as saying.

  • Debbie White

    TWITTER TO INVEST IN BITCOIN?

    Twitter has thought about whether to hold bitcoin on its balance sheet.

    But it has not made any changes yet, the social media platform's chief financial officer Ned Segal told CNBC on Wednesday.

    Segal said Twitter had considered how it might pay vendors or employees using bitcoin, should they ask to transact using the virtual currency.

    "We might consider whether we would be transferring dollars to bitcoin at the time of the transaction or if we wanted bitcoin on our balance sheet ready to complete that transaction," he added.

    Twitter top boss Jack Dorsey, who is also the chief executive of payments firm Square Inc, is a known bitcoin enthusiast and has said he believes the internet will have its own native currency.

     

  • Debbie White

    BE CAUTIOUS BEFORE BUYING BITCOIN – YOU COULD LOSE ALL YOUR MONEY

    Before investing in any cryptocurrency, you should be aware of all the risks involved.

    Tesla founder Elon Musk helped push the value of a single Bitcoin to beyond $48,000 (£34,680) this week after revealing that the car maker has invested $1.5billion in the virtual coin.

    But, their value is highly volatile and City watchdog the Financial Conduct Authority has warned investors should be prepared to lose all their money.

    Investing in cryptocurrencies is not a guaranteed way to make money.

  • Debbie White

    BITCOIN SLIPS IN WEDNESDAY TRADING

    Bitcoin today dipped to $45,402 after setting a record close to $50,000 on Tuesday.

    The dollar was mixed against other major currencies.

    US stocks struck fresh record highs Wednesday as trading got underway amid stimulus hopes, while oil prices hit 13-month highs.

    Dealers remain upbeat about the chances of US President Joe Biden pushing through his $1.9trillion economic rescue package despite warnings that the move – along with an expected economic recovery – would fan inflation.

    As trading got underway on Wall Street, the Dow Jones Industrial Average, the broader S&P 500 and the tech-heavy Nasdaq Composite all struck fresh records.

  • Debbie White

    WHAT IS BITCOIN?

    Bitcoin is a virtual currency – it's traded between people without the help of a bank.

    Every transaction is recorded in a public ledger, or "blockchain".

    Bitcoin can be traded anonymously, which can make it a popular way of funding illegal activities.

    The value of Bitcoin fluctuates wildly.

     

  • Debbie White

    WHAT CAN YOU BUY WITH BITCOIN?

    There are almost 20,000 locations across the world where you can use the virtual currency in real-life shops and pubs as well as online, according to cryptocurrency website Coinmap.

    You can already purchase Xbox games from the Microsoft Store using the cryptocurrency in the US, but this is not currently available in the UK.

    The Royal National Lifeboat association will let you make donations using the cryptocurrency.

    You can also buy pints at the Pembury Tavern in east London, once it reopens after lockdown or a seat on Virgin Galactic's commercial space flights.

    Property companies such as Gravity Co-Living in London will even let tenants pay their rent with Bitcoin.

  • Debbie White

    US STOCKS SET TO RISE TO RECORDS AGAIN

    The US stocks are set to rise to record levels again today after Tuesday's 'pause', reports CNN.

    Presenter Julia Chatterley said a new poll showed that a quarter of adults have been dabbling in the share market.

    The poll revealed that 28% of American adults invested after Reddit group Wallstreetbets helped send shares of GameStop and AMC Entertainment Holdings soaring in January.

    She said that positive signs include a slow-down in service prices, and the government's stimulus package.

  • Niamh Cavanagh

    'HACKED' TRADING SITE APOLOGISES AFTER MESSAGE TOLD USERS THEY HAD 'STOPPED SERVING BLACK PEOPLE'

    A popular trading site have been forced to apologise after a notification informed their users they were no longer serving "black customers" – along with a link claiming to contain "kid p*rn".

    Users of Blockfolio, the popular trading app and tracker, were stunned when they received a push notification on Tuesday telling them black people would lose all funds immediately if they did not withdraw them.

    The shocking message even added a link describing "best child p*rn is available here", while Bitcoin currency's name was changed to "n***a coin" on the company's app.

  • Niamh Cavanagh

    EXPLAINER – WHAT IS CLUBHOUSE?

    Clubhouse, an invitation-only audio chat app launched less than a year ago, has caught the attention of tech industry bigshots like Tesla CEO Elon Musk and Facebook CEO Mark Zuckerberg not to mention the Chinese government, which has already blocked it in the country.

    The iPhone-only app, once you're in, lets you start or listen into conversations on a whole host of topics, from tech to pro sports, parenting, Black literature and so on.

    There are no posts, photos or videos only peoples profile pictures and their voices.

    Conversations can be intimate, like a phone call, or might include thousands of people listening to a talk by boldface names, like a conference or stage interview.

    Think part podcast, part conference call, part social media. It's free to use and there are no ads, at least not at this point.

  • Debbie White

    INVESTORS CAGEY ABOUT BITCOIN 'VOLATILITY'

    Bitcoin has jumped more than 30 per cent in February alone, which CNN Business describes as 'an impressive increase'.

    However, "that kind of price action is the exact opposite of what reserve investors are looking for," Marc Chandler, chief market strategist at Bannockburn Global Forex, told the broadcaster.

    "Rather than making it more attractive as a reserve asset it makes it less attractive, because volatility is risk," he added.

  • Debbie White

    BITCOIN SURGE 'NOT ENOUGH TO KNOCK OVER DOLLAR'

    Could Bitcoin's soaring price "be the beginning of the end of the greenback's reign?" asks CNN Business.

    Bitcoin was up around 5% Tuesday afternoon, while the US dollar index was down 0.6%.

    CNN says: "Don't turn all your hard-earned dollars into bitcoin just yet.

    "The US dollar is the world's reserve currency, meaning that companies, countries and central banks are keeping it in their accounts.

    "It's also the currency most used in transactions around the globe."

  • Debbie White

    BITCOIN 'BECOMING ALTERNATIVE ASSET'

    "As more and more companies start accepting bitcoin, this will only lead to further increases in demand in a market which is limited in supply," writes Fawad Razaqzada, analyst at ThinkMarkets.

    "Bitcoin is becoming an alternative asset," said Brad Bechtel, global head of FX at Jefferies.

    "It's not correlated to anything else in the market," he added, reports CNN Business.

    Bitcoin hit a high of more than $48,000 on Tuesday after Tesla reported a $1.5billion investment in the cryptocurrency and announced it could soon be used to buy its electric cars.

  • Debbie White

    CAN TESLA TURN CO2 UNFRIENDLY BITCOIN GREEN?

    Tesla's backing of bitcoin this week could "turbo-charge global use of a currency that's estimated to cause more pollution than a small country every year", warns Reuters.

    Bitcoin's virtual, so it's not made from paper or plastic, or even metal.

    But, the news agency explains, the digital currency is created when high-powered computers compete against other machines to solve complex mathematical puzzles, an energy-intensive process that currently often relies on fossil fuels, particularly coal – the dirtiest of them all.

    At current rates, such bitcoin "mining" devours about the same amount of energy annually as the Netherlands did in 2019, the latest available data from the University of Cambridge and the International Energy Agency shows.

    Bitcoin production is estimated to generate between 22 and 22.9 metric tons of carbon dioxide emissions a year, or between the levels produced by Jordan and Sri Lanka, according to a 2019 study in scientific journal Joule.

  • Debbie White

    JUDGE SLAMS DRUG DEALER FOR USING BITCOIN & 'ACCESSING THE DARK WEB'

    On Tuesday, Dylan Bailey, 19, of Nuneaton, Warks, who has no previous convictions, was jailed for two-and-a-half years after he admitted importing ecstasy and being concerned in its supply.

    Sentencing him at Warwick Crown Court, Judge Anthony Potter said: "Almost exactly a year ago someone at the international logistics centre tasked with inspecting packages opened a package addressed to you which contained, concealed in a DVD case, 83 ecstasy tablets.

    "Your phone had evidence of you having supplied drugs in the past to other individuals.

    "You accepted you had done some research on how to access the dark web, and you researched and obtained Bitcoin and accessed the dark web and made a purchase of ecstasy tablets.

    "This will be your first prison sentence, and you will be entering the prison system at a time when it is particularly onerous."

  • Debbie White

    TEEN CAGED FOR USING BITCOIN TO BUY ECSTASY

    A teenager drug dealer has been jailed after he used Bitcoin to buy ecstasy pills on the dark web, which were then smuggled into the UK in DVD cases.

    Dylan Bailey, 19, used the cryptocurrency to buy the drugs from a Dutch supplier who posted them to his home address.

    He was snared when packages of DVD cases were seized at Royal Mail's international logistics centre in Coventry last February.

    Inside the cases were 83 pink pills embossed with the Coca-Cola logo.

    Police raided Bailey's home in Nuneaton, Warks., and seized his phone which contained messages to dealers and customers.

  • Debbie White

    PAYPAL STOCK HAS ALSO SURGED

    PayPal Holdings joined the cryptocurrency market in October, allowing customers to buy, sell and hold bitcoin and other virtual coins using the US digital payments company's online wallets.

    Its stock has surged 21% in 2021.

  • Debbie White

    OTHER FIRMS RIDING THE BITCOIN SURGE

    Companies with much more significant exposures to bitcoin in proportion to their overall stock market value than Tesla have also rallied.

    Their boost follows Tesla's disclosure, increasing already strong stock gains driven by the cryptocurrency's recent rally.

    MicroStrategy, whose CEO Michael Saylor is an avid bitcoin bull, surged 22% on Tuesday, bringing its gain this week to over 50%, and it has surged over 200% so far in 2021.

    The business intelligence software company has bought about 71,079 bitcoins, now worth over $3billion and equivalent to over a quarter of its $11.8 billion stock market value.

  • Debbie White

    TESLA DIPPED ON TUESDAY

    Tesla gained after disclosing its Bitcoin investment on Monday.

    But the American electric vehicle firm dipped 1.6% on Tuesday, leaving its gain in 2021 at 20%.

    This compares to the S&P 500's 4% rise.

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