News
If you had invested $1,000 in Bitcoin when Tesla first purchased it, you would have earned this profit.
The Last Bitcoin (BTC) running of the bullswhich reached an all-time high of nearly $69,000 in 2021, was driven primarily by growing institutional interest in the cryptographic space.
In particular, the electric vehicle (EV) manufacturer Tesla (NASDAQ: TSL) was among these entities after purchasing $1.5 billion of Bitcoina decision that saw the girl Encrypt reach the $44,000 mark.
The announcement on February 8, 2021 sent shockwaves through the financial world, signaling the mainstream acceptance of Bitcoin. At the time of purchase, Bitcoin was valued at $38,886.
Fast forward to today, July 10, 2024, and Bitcoin is trading at $58,124. Between these dates, Bitcoin has seen significant price fluctuations, including a record high of over $70,000.
Tesla’s endorsement of Bitcoin not only represented a major vote of confidence from one of the world’s most influential companies, but also legitimized the cryptocurrency in the eyes of traditionalists investors.
Bitcoin Return on $1,000 Investment
Along these lines, the returns have been impressive for those savvy investors who took the opportunity and invested $1,000 in Bitcoin on the day of Tesla’s announcement. An initial investment of $1,000 at $38,886 per Bitcoin would have purchased approximately 0.0257 BTC.
With Bitcoin now trading at $58,124, the current value of that investment would be approximately $1,493.59. This means that the investment would have yielded a profit of $493.59.
In particular, Bitcoin’s journey since Tesla’s announcement has been anything but smooth. The cryptocurrency industry in general has experienced significant fluctuations, influenced by many factors, including regulatory newsmarket sentiment, macroeconomic trends and the evolving digital finance landscape.
It’s worth noting that while Tesla has backtracked on its decision to accept Bitcoin, the investment extends beyond immediate profit. It has ushered in broader acceptance of cryptocurrencies by traditional businesses and financial institutions.
This has also translated into traditional financial products such as the Bitcoin exchange-traded fund (ETF), whose approval saw Bitcoin hit another all-time high above $73,000 in early 2024.