Bitcoin (BTC) Shoots 4.5% As Tesla Starts Accepting Bitcoin Payments, Won’t Convert to Cash

World’s largest automobile company Tesla is once again here to rescue Bitcoin (BTC) from falling further. An hour back, Tesla boss Elon Musk tweeted that the company has started accepting Bitcoin payments against the purchase of any Tesla model.

The announcement was enough to push Bitcoin’s (BTC) price 4% northwards. As of writing this story, the BTC price is trading at $56,139 with a market cap of $1.047 billion. Elon Musk said that Tesla will operate the Bitcoin nodes directly while using its internal; and open-source software. Besides, another bullish indicator is that the company plans to retain its Bitcoins received as payments instead of converting them to cash.

This shows how bullish Tesla is on its Bitcoin (BTC) bet and the future of the world’s largest cryptocurrency. Last month in mid-February 2021, Tesla made the official announcement of purchasing $1.5 billion worth of Bitcoins at the price of around $33K.

Tesla Leading the Corporate Bitcoin Movement

Tesla’s entry into the Bitcoin market has also sparked major corporate interest as big companies are mulling to move part of its balance sheet to BTC. Interestingly, Tesla has already made more than $1 billion in returns from its Bitcoin bet in a month’s time, which is more than the company’s total earnings for the last year.

The company has already said that it updated its policy “to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term,” it added.

However, Musk’s love with Bitcoin (BTC) hasn’t been to the moon as expected. A few weeks back, Musk called Bitcoin “as bs (bull-shit) as fiat”. Defending Tesla’s Bitcoin investments, Musk said that it was the collective decision of his entire board of directors. Musk has been vehemently supporting the meme-cryptocurrency Dogecoin for a long-time. Recently, Musk also tried his hands at the NFT craze, but later dropped-off the idea.

As Tesla provides Bitcoin the reason to once again resume the northward journey, here are some on-chain fundamentals supporting the bullish momentum ahead.