Bitcoin surged to an all-time high after Telsa Inc. said it has invested $1.5 billion and will begin accepting the cryptocurrency as a form of payment.
Prices jumped 10 percent to $42,595 as of 12:57 p.m. 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.
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