Bitcoin hit a new all-time high near $81,000, with futures premiums surging, signalling strong investor confidence that the cryptocurrency's record rally is set to continue. According to a comprehensive report by CNBC, this surge is being fueled by the recent US elections, which saw a wave of pro-crypto candidates secure office.

Open interest in bitcoin’s price surpassing $90,000 rose to more than $2.8 billion on the popular Deribit derivatives exchange, one of a few crypto native platforms that offers futures trading. Deribit encompasses most of the offshore options market, the CNBC report explained further.

“The options market’s bias is heavily toward continued momentum. Call options trade at a premium to puts, and open interest in out-of-the-money calls has grown,” Vetle Lunde, head of research at K33 Research, told CNBC.

A call option gives the buyer the right to buy shares of an underlying asset at a certain price for a specified period. Buying a call option is a bet the asset price will move higher. Buying a put option is a bet the asset price will fall.

The CME derivates exchange offers bitcoin futures contracts and is a popular way for institutions in the US to make bets on the future price of bitcoin. Velde told CNBC that on Friday CME premiums for ether and bitcoin averaged 14.5 per cent and 14 per cent, respectively. Ahead of the election, Velde says these premiums sat at 7 per cent, and had spent a majority of the past half year hovering slightly below 10 per cent.

“The recent surge is a meaningful deviation higher emphasizing the bullish flows of late,” he added, noting that yields more or less stabilized well into the double digits after the election became clear.

“Alongside the growth in leverage, we saw the first meaningful example of growing yields in offshore derivatives, indicative of the move being led by determined risk-takers positioning for further upside,” said Velde.

The early innings of bitcoin’s push higher coincided with substantial growth in open interest in perpetual swaps, or contracts that allow buyers to speculate on where they think prices are headed without a set expiration date.

However, according to Velde, liquidity in crypto markets on weekends is typically poorer than during weekdays, as neither CME futures nor ETFs are open to trade. Thus, moves tend to overreact and substantially retrace once these markets open again.

Donald Trump promised to turn US into the 'crypto capital of the planet'

President-elect Donald Trump promised on the campaign trail to turn the United States into the “crypto capital of the planet.” His multiple pledges to the crypto community included launching a national crypto stockpile with the more than $16 billion in bitcoin the US government has amassed through asset seizures, as well as slashing interest rates. The easing of monetary policy typically dovetails with a surge in crypto prices since it makes it cheaper to borrow money.

<o:p>&nbsp;</o:p>The Federal Reserve, which guides the country’s monetary policy, sets the benchmark rate. It also, by design, operates independently from the White House. On Thursday, the Fed approved its second consecutive interest rate cut.

On the back of election results and the Fed’s unanimous vote to again slash the benchmark rate, the crypto market broadly surged into the weekend. Ether eclipsed Bitcoin’s rise, up 30 per cent in the last seven days, and Solana’s market cap topped $100 billion on Sunday.

The total market cap of all spot bitcoin ETFs is now above $80 billion, and in the last three trading days alone, the spot funds collectively added $2.3 billion.

Within fintech, companies tied to crypto were some of the top performers, after candidates funded by the crypto industry won races up and down the ballot. 

Coinbase jumped 48 per cent in a week<o:p></o:p>

Coinbase shares jumped 48 per cent for the week, their strongest performance since January 2023. Coinbase was one of the top corporate donors in the election cycle, giving more than $75 million to Fairshake and its affiliate PACs, including a fresh pledge of $25 million to support the pro-crypto super PAC in the 2026 midterms.

Trump has vowed to oust SEC Chair Gary Gensler, which potentially bodes well for companies like Coinbase fighting the regulator in court over alleged securities offences.

“Tuesday night was certainly a big night for crypto and the crypto voter,” Coinbase’s chief legal officer Paul Grewal said in an interview. “We’re going to have the most pro-crypto Congress ever, and Coinbase has played some part in all of that.”

Robinhood, which allows users to buy and sell a number of digital currencies, rose 27 per cent for the week. The online brokerage received a Wells Notice from the SEC in May, a move that often precedes formal charges.

Robinhood’s general manager for its crypto unit stated that the goal at Robinhood is to be able to work within the administration, as explained in the CNBC report further.

“If you think about crypto, it’s a very fast-moving pace. It’s complicated, it was made by engineers, for engineers,” said Johann Kerbrat, the Vice President and General Manager of Robinhood Crypto. “We want to help policymakers to understand it and help them drive the right protections for the customers.”

Market participants and investors will follow these developments carefully as it will help them in taking informed decisions with regard to Bitcoin.

Bitcoin hit a new all-time high near $81,000, with futures premiums surging, signalling strong investor confidence that the cryptocurrency's record rally is set to continue.

Bitcoin hit a new all-time high near $81,000, with futures premiums surging, signalling strong investor confidence that the cryptocurrency's record rally is set to continue. According to a comprehensive report by CNBC, this surge is being fueled by the recent US elections, which saw a wave of pro-crypto candidates secure office. Open interest in bitcoin’s price surpassing $90,000 rose to more than $2.8 billion on the popular Deribit derivatives exchange, one of a few crypto native platforms that offers futures trading. Deribit encompasses most of the offshore options market, the CNBC report explained further. “The options market’s bias is heavily toward continued momentum. Call options trade at a premium to puts, and open interest in out-of-the-money calls has grown,” Vetle Lunde, head of research at K33 Research, told CNBC. A call option gives the buyer the right to buy shares of an underlying asset at a certain price for a specified period. Buying a call option is a bet the asset price will move higher. Buying a put option is a bet the asset price will fall. The CME derivates exchange offers bitcoin futures contracts and is a popular way for institutions in the US to make bets on the future price of bitcoin. Velde told CNBC that on Friday CME premiums for ether and bitcoin averaged 14.5 per cent and 14 per cent, respectively. Ahead of the election, Velde says these premiums sat at 7 per cent, and had spent a majority of the past half year hovering slightly below 10 per cent. “The recent surge is a meaningful deviation higher emphasizing the bullish flows of late,” he added, noting that yields more or less stabilized well into the double digits after the election became clear. “Alongside the growth in leverage, we saw the first meaningful example of growing yields in offshore derivatives, indicative of the move being led by determined risk-takers positioning for further upside,” said Velde. The early innings of bitcoin’s push higher coincided with substantial growth in open interest in perpetual swaps, or contracts that allow buyers to speculate on where they think prices are headed without a set expiration date. However, according to Velde, liquidity in crypto markets on weekends is typically poorer than during weekdays, as neither CME futures nor ETFs are open to trade. Thus, moves tend to overreact and substantially retrace once these markets open again. Donald Trump promised to turn US into the 'crypto capital of the planet' President-elect Donald Trump promised on the campaign trail to turn the United States into the “crypto capital of the planet.” His multiple pledges to the crypto community included launching a national crypto stockpile with the more than $16 billion in bitcoin the US government has amassed through asset seizures, as well as slashing interest rates. The easing of monetary policy typically dovetails with a surge in crypto prices since it makes it cheaper to borrow money. The Federal Reserve, which guides the country’s monetary policy, sets the benchmark rate. It also, by design, operates independently from the White House. On Thursday, the Fed approved its second consecutive interest rate cut. On the back of election results and the Fed’s unanimous vote to again slash the benchmark rate, the crypto market broadly surged into the weekend. Ether eclipsed Bitcoin’s rise, up 30 per cent in the last seven days, and Solana’s market cap topped $100 billion on Sunday. The total market cap of all spot bitcoin ETFs is now above $80 billion, and in the last three trading days alone, the spot funds collectively added $2.3 billion. Within fintech, companies tied to crypto were some of the top performers, after candidates funded by the crypto industry won races up and down the ballot. Coinbase jumped 48 per cent in a week Coinbase shares jumped 48 per cent for the week, their strongest performance since January 2023. Coinbase was one of the top corporate donors in the election cycle, giving more than $75 million to Fairshake and its affiliate PACs, including a fresh pledge of $25 million to support the pro-crypto super PAC in the 2026 midterms. Trump has vowed to oust SEC Chair Gary Gensler, which potentially bodes well for companies like Coinbase fighting the regulator in court over alleged securities offences. “Tuesday night was certainly a big night for crypto and the crypto voter,” Coinbase’s chief legal officer Paul Grewal said in an interview. “We’re going to have the most pro-crypto Congress ever, and Coinbase has played some part in all of that.” Robinhood, which allows users to buy and sell a number of digital currencies, rose 27 per cent for the week. The online brokerage received a Wells Notice from the SEC in May, a move that often precedes formal charges. Robinhood’s general manager for its crypto unit stated that the goal at Robinhood is to be able to work within the administration, as explained in the CNBC report further. “If you think about crypto, it’s a very fast-moving pace. It’s complicated, it was made by engineers, for engineers,” said Johann Kerbrat, the Vice President and General Manager of Robinhood Crypto. “We want to help policymakers to understand it and help them drive the right protections for the customers.” Market participants and investors will follow these developments carefully as it will help them in taking informed decisions with regard to Bitcoin.

Bitcoin hits all-time high, with $2.8 billion riding on it reaching $90,000

Bitcoin briefly climbed above $70,000 as investors braced themselves for MicroStrategy earnings and counted the days to the US presidential election according to a detailed report by CNBC.

The CNBC report further explained that, the price of bitcoin was last higher by about 3 per cent at $69,925.00, according to Coin Metrics. Further, at about 6:00 p.m. Eastern on October 28, it touched $70,207.02 and has been oscillating since.

Stocks tied to the price of the cryptocurrency were little changed in extended trading. In regular trading on October 28, crypto exchange platform Coinbase rallied by 5 per cent and bitcoin proxy MicroStrategy soared by nearly 9 per cent.

The last time bitcoin touched $70,000 was in June of this year. It has tested that level several times this year, after hitting a record of $73,797.68 in March. Earlier forays above $70,000 have been limited to mere blips.

Optimism is building towards the US elections<o:p></o:p>

Optimism is building ahead of the US presidential election next week. Bitcoin has been confined to a tight range between $55,000 and $70,000.

Still, it may be poised for a breakout with stocks hitting new highs this month. As there are major events to follow in the first week of November, election day on November 5 and another Federal Reserve rate policy decision on November 7.

Donald Trump has presented himself as pro-crypto<o:p></o:p>

Republican nominee and former president Donald Trump has been courting the crypto industry this year and presented himself as the pro-crypto candidate. Whereas democratic nominee and Vice President Kamala Harris have been more muted on crypto, and the industry is split on how her potential presidency could affect crypto companies.

The outcome is widely viewed as a key catalyst for future price action in the bitcoin, but investors have watching and waiting as the election approaches. Last week, bitcoin surged toward $70,000, but it ultimately fell short of the threshold.

Investors are also watching for earnings from Coinbase and MicroStrategy, both slated for October 30. On October 28, MicroStrategy, which trades as a high-beta play on the price of bitcoin, registered its highest close since March 15, 2000. MicroStrategy is looking to extend its seven-week win streak, its longest since rally since an 11-week streak that ended in late October 2010.

Market participants and investors are going to closely watch these developments in bitcoin and take informed investment decisions based on the outcome of the US elections. 

<o:p>&nbsp;</o:p>

<o:p>&nbsp;</o:p>

Bitcoin briefly climbed above $70,000 as investors braced themselves for MicroStrategy earnings and counted the days to the US presidential election according to a detailed report by CNBC.

Bitcoin briefly climbed above $70,000 as investors braced themselves for MicroStrategy earnings and counted the days to the US presidential election according to a detailed report by CNBC. The CNBC report further explained that, the price of bitcoin was last higher by about 3 per cent at $69,925.00, according to Coin Metrics. Further, at about 6:00 p.m. Eastern on October 28, it touched $70,207.02 and has been oscillating since. Stocks tied to the price of the cryptocurrency were little changed in extended trading. In regular trading on October 28, crypto exchange platform Coinbase rallied by 5 per cent and bitcoin proxy MicroStrategy soared by nearly 9 per cent. The last time bitcoin touched $70,000 was in June of this year. It has tested that level several times this year, after hitting a record of $73,797.68 in March. Earlier forays above $70,000 have been limited to mere blips. Optimism is building towards the US elections Optimism is building ahead of the US presidential election next week. Bitcoin has been confined to a tight range between $55,000 and $70,000. Still, it may be poised for a breakout with stocks hitting new highs this month. As there are major events to follow in the first week of November, election day on November 5 and another Federal Reserve rate policy decision on November 7. Donald Trump has presented himself as pro-crypto Republican nominee and former president Donald Trump has been courting the crypto industry this year and presented himself as the pro-crypto candidate. Whereas democratic nominee and Vice President Kamala Harris have been more muted on crypto, and the industry is split on how her potential presidency could affect crypto companies. The outcome is widely viewed as a key catalyst for future price action in the bitcoin, but investors have watching and waiting as the election approaches. Last week, bitcoin surged toward $70,000, but it ultimately fell short of the threshold. Investors are also watching for earnings from Coinbase and MicroStrategy, both slated for October 30. On October 28, MicroStrategy, which trades as a high-beta play on the price of bitcoin, registered its highest close since March 15, 2000. MicroStrategy is looking to extend its seven-week win streak, its longest since rally since an 11-week streak that ended in late October 2010. Market participants and investors are going to closely watch these developments in bitcoin and take informed investment decisions based on the outcome of the US elections.

Building up to the US election, Bitcoin briefly tops $70,000 for the first time since June

Bitcoin has reached its highest level since July 2024, propelling a wave of optimism across the cryptocurrency market and significantly boosting crypto-related stocks. This surge comes as investors react to a combination of positive market sentiment and macroeconomic factors that have reignited interest in digital currencies as detailed in a report by CNBC. <o:p></o:p>

Market dynamics fuel Bitcoin's rise<o:p></o:p>

On October 16, Bitcoin climbed to approximately $68,000, marking a notable increase of over 10 per cent in just a few days. This surge has been attributed to various factors, including a resurgence of institutional interest and ongoing discussions regarding regulatory frameworks that could provide greater clarity for investors.

Analysts suggest that one reason for bitcoin’s 53 per cent&nbsp;gain so far this year is a host of new spot bitcoin exchange-traded funds that hit the market in January, welcoming in a host of new investors. Ether ETFs followed in July.

Investors have bought $1.2 billion in ETF shares in the past three days, bringing total holdings to more than $63 billion. BlackRock’s iShares Bitcoin Trust (IBIT) has accounted for more than 30 per cent&nbsp;of the new purchases.

<o:p></o:p>

The rise in Bitcoin's value has had a ripple effect on the broader cryptocurrency market. Major altcoins such as Ethereum and Cardano have also experienced substantial gains, with many investors diversifying their portfolios in response to Bitcoin's upward trajectory. The overall market capitalisation of cryptocurrencies has surged past $1 trillion, reflecting the growing confidence among investors.<o:p></o:p>

Impact on crypto-related stocks<o:p></o:p>

The bullish trend in Bitcoin has not only invigorated the cryptocurrency itself but has also led to impressive gains for companies involved in the crypto space. Stocks of firms like Coinbase and MicroStrategy have seen significant increases, with Coinbase reporting a rise of nearly 15 per cent following Bitcoin's surge. This trend highlights the interconnectedness of cryptocurrency prices and the performance of related businesses.

<o:p>Samara Cohen, chief investment officer of ETF and index investments at BlackRock , stated that 80 per cent of buyers of&nbsp;iShares Bitcoin Trust ETF&nbsp;(IBIT) are direct investors. Of those, 75 per cent have never owned a BlackRock ETF, she said.</o:p>

Investors are closely monitoring these developments, as the performance of crypto-related stocks often mirrors movements in the underlying digital assets. The recent uptick in Bitcoin's price has prompted many analysts to reassess their forecasts for both cryptocurrencies and the companies that support them.<o:p></o:p>

Regulatory landscape and future prospects<o:p></o:p>

As Bitcoin continues to gain momentum, discussions surrounding improved regulation remain at the forefront of investor considerations. The potential improvements in the rules and the norms of a spot Bitcoin ETF is viewed as a critical turning point that could legitimise cryptocurrency investments for a broader audience. Regulatory clarity could also encourage institutional players to enter the market more aggressively, further driving demand for Bitcoin and its associated assets.<o:p></o:p>

Experts believe that if this momentum persists, Bitcoin could challenge its all-time high of nearly $69,000 reached in November 2021. However, they caution that volatility remains inherent to the cryptocurrency market, and investors should remain vigilant as they navigate these fluctuations.<o:p></o:p>

Hence, Bitcoin's recent surge to its highest level since July has not only revitalised interest in cryptocurrencies but has also positively impacted related stocks

As the market adapts to evolving regulatory landscapes and investor sentiment shifts, all eyes will be on Bitcoin's next moves and their implications for the broader financial ecosystem. With increasing institutional interest and potential regulatory advancements on the horizon, potential investors will keenly observe the asset class and take informed investment decisions depending on how the reglatory framework governing the crypto asset class evolves.

Bitcoin has reached its highest level since July 2024, propelling a wave of optimism across the cryptocurrency market and significantly boosting crypto-related stocks.

Bitcoin has reached its highest level since July 2024, propelling a wave of optimism across the cryptocurrency market and significantly boosting crypto-related stocks. This surge comes as investors react to a combination of positive market sentiment and macroeconomic factors that have reignited interest in digital currencies as detailed in a report by CNBC. Market dynamics fuel Bitcoin's rise On October 16, Bitcoin climbed to approximately $68,000, marking a notable increase of over 10 per cent in just a few days. This surge has been attributed to various factors, including a resurgence of institutional interest and ongoing discussions regarding regulatory frameworks that could provide greater clarity for investors. Analysts suggest that one reason for bitcoin’s 53 per cent gain so far this year is a host of new spot bitcoin exchange-traded funds that hit the market in January, welcoming in a host of new investors. Ether ETFs followed in July. Investors have bought $1.2 billion in ETF shares in the past three days, bringing total holdings to more than $63 billion. BlackRock’s iShares Bitcoin Trust (IBIT) has accounted for more than 30 per cent of the new purchases. The rise in Bitcoin's value has had a ripple effect on the broader cryptocurrency market. Major altcoins such as Ethereum and Cardano have also experienced substantial gains, with many investors diversifying their portfolios in response to Bitcoin's upward trajectory. The overall market capitalisation of cryptocurrencies has surged past $1 trillion, reflecting the growing confidence among investors. Impact on crypto-related stocks The bullish trend in Bitcoin has not only invigorated the cryptocurrency itself but has also led to impressive gains for companies involved in the crypto space. Stocks of firms like Coinbase and MicroStrategy have seen significant increases, with Coinbase reporting a rise of nearly 15 per cent following Bitcoin's surge. This trend highlights the interconnectedness of cryptocurrency prices and the performance of related businesses. Samara Cohen, chief investment officer of ETF and index investments at BlackRock , stated that 80 per cent of buyers of iShares Bitcoin Trust ETF (IBIT) are direct investors. Of those, 75 per cent have never owned a BlackRock ETF, she said. Investors are closely monitoring these developments, as the performance of crypto-related stocks often mirrors movements in the underlying digital assets. The recent uptick in Bitcoin's price has prompted many analysts to reassess their forecasts for both cryptocurrencies and the companies that support them. Regulatory landscape and future prospects As Bitcoin continues to gain momentum, discussions surrounding improved regulation remain at the forefront of investor considerations. The potential improvements in the rules and the norms of a spot Bitcoin ETF is viewed as a critical turning point that could legitimise cryptocurrency investments for a broader audience. Regulatory clarity could also encourage institutional players to enter the market more aggressively, further driving demand for Bitcoin and its associated assets. Experts believe that if this momentum persists, Bitcoin could challenge its all-time high of nearly $69,000 reached in November 2021. However, they caution that volatility remains inherent to the cryptocurrency market, and investors should remain vigilant as they navigate these fluctuations. Hence, Bitcoin's recent surge to its highest level since July has not only revitalised interest in cryptocurrencies but has also positively impacted related stocks As the market adapts to evolving regulatory landscapes and investor sentiment shifts, all eyes will be on Bitcoin's next moves and their implications for the broader financial ecosystem. With increasing institutional interest and potential regulatory advancements on the horizon, potential investors will keenly observe the asset class and take informed investment decisions depending on how the reglatory framework governing the crypto asset class evolves.

Bitcoin hits highest level since July, boosting Crypto-related stocks

Bitcoin soared to a new record high on Tuesday, fuelled by investors pouring money into US&nbsp;spot exchange-traded crypto products and the prospect that global interest rates may fall.

The world's largest cryptocurrency hit a high of $69,202, topping November 2021's all-time peak of $68,999.99. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. It then traded lower and was last at $65,792.

“The bitcoin all-time high marks a turning point for crypto," said Nathan McCauley, CEO and co-founder of crypto platform Anchorage Digital. "Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market."

Bitcoin's meteoric nearly 160 per cent&nbsp;ascent since October, of which 44 per cent&nbsp;came in February alone, marks a sharp contrast to 2022, when the market was beaten into an 18-month-long crypto winter, plagued by a string of high-profile corporate bankruptcies and scandal.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/bitcoin-surges-beyond-68000-approaches-all-time-high-amid-record-inflows-696675">Bitcoin surges beyond $68,000, approaches all-time high amid record inflows</a>

Net flows into the 10 largest U.S. spot bitcoin funds reached $2.2 billion in the week ended March 1, with more than $2 billion of that going into BlackRock's iShares Bitcoin Trust, according to LSEG data.

"We've been fielding more questions from the field on bitcoin, especially now that there are more efficient and cheaper ways to own bitcoin after the recent slew of ETF launches," said David Wagner, a portfolio manager at Aptus Capital Advisors.

<h2>RISK ON</h2>

In addition to demand from a wider pool of investors,&nbsp;bitcoin, and crypto generally, has gotten a boost from the prospect of the Federal Reserve cutting U.S. interest rates, which often prompts investors to divert capital into assets that are higher yielding or more volatile.

“One part of (bitcoin's rally) has to do with the generally positive sentiment on risk in general," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "You can see that in the all-time high in the S&amp;P 500 and Nasdaq."

Investors have lapped up crypto, mega-cap technology stocks and investment-grade corporate bonds in particular this year.

Also on Tuesday, gold struck a record high, moving further above $2,100 per ounce in a rally sparked by growing bets for a US&nbsp;interest rate cut in June.

"(Cryptocurrencies) are now being used as an alternative to using gold when markets are looking to hedging against increased risks, higher interest rates," said Stuart Cole, chief economist at Equiti Capital. "So no surprise I think that when you see the gold price rallying, cryptos are doing the same.”

Analysts say&nbsp;bitcoin&nbsp;also benefited ahead of April's so-called halving event - a process that takes place every four years in which the rate at which tokens are released is cut in half, along with the rewards given to miners.

Supply of&nbsp;bitcoin&nbsp;is limited to 21 million, of which 19 million have already been mined.

Despite its recent popularity, for many investors,&nbsp;bitcoin&nbsp;is simply too volatile and lacks enough real-world applications to be anything other than a speculative asset.

Yet, in addition to the cocktail of flows of money into ETFs, the prospect of constrained&nbsp;bitcoin&nbsp;supply and an eventual decline in U.S. interest rates, some companies are adding crypto to their corporate coffers.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/bitcoin-plummets-to-40000-hits-lowest-point-since-etf-debut-682753">Bitcoin plummets to $40,000, hits lowest point since ETF debut</a>

In February, software firm MicroStrategy - a long time holder of&nbsp;bitcoin&nbsp;- said it had recently bought about 3,000 more&nbsp;bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of&nbsp;bitcoin&nbsp;and ether.

On Monday, the number of dollar-pegged stablecoins issued by Tether crossed $100 billion for the first time. Tether issues a stablecoin that is designed to maintain a constant value of $1 and is widely used as a way of moving money in cryptocurrency without being exposed to price swings in other tokens such as&nbsp;bitcoin&nbsp;and ether.

The price of ether, the world's second largest cryptocurrency was last trading at $3,706, well below its record high of $4,867 that it touched in November 2021.

"Active trader positioning in&nbsp;bitcoin&nbsp;now appears fairly long. Valuations for ether and most other tokens remain below their highs from the previous crypto cycle," said Zach Pandl, head of research at Grayscale Investments.

Crypto stocks were trading lower on Tuesday, with shares in Coinbase down 2.5 per cent&nbsp;and shares in crypto miners Riot Platforms and Marathon Digital down 9.7 per cent&nbsp;and 11.1 per cent, respectively.

Bitcoin soared to a new record high on Tuesday, fuelled by investors pouring money into US spot exchange-traded crypto products and the prospect that global interest rates may fall.

Bitcoin soared to a new record high on Tuesday, fuelled by investors pouring money into US spot exchange-traded crypto products and the prospect that global interest rates may fall. The world's largest cryptocurrency hit a high of $69,202, topping November 2021's all-time peak of $68,999.99. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. It then traded lower and was last at $65,792. “The bitcoin all-time high marks a turning point for crypto," said Nathan McCauley, CEO and co-founder of crypto platform Anchorage Digital. "Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market." Bitcoin's meteoric nearly 160 per cent ascent since October, of which 44 per cent came in February alone, marks a sharp contrast to 2022, when the market was beaten into an 18-month-long crypto winter, plagued by a string of high-profile corporate bankruptcies and scandal. Also Read | Bitcoin surges beyond $68,000, approaches all-time high amid record inflows Net flows into the 10 largest U.S. spot bitcoin funds reached $2.2 billion in the week ended March 1, with more than $2 billion of that going into BlackRock's iShares Bitcoin Trust, according to LSEG data. "We've been fielding more questions from the field on bitcoin, especially now that there are more efficient and cheaper ways to own bitcoin after the recent slew of ETF launches," said David Wagner, a portfolio manager at Aptus Capital Advisors. RISK ON In addition to demand from a wider pool of investors, bitcoin, and crypto generally, has gotten a boost from the prospect of the Federal Reserve cutting U.S. interest rates, which often prompts investors to divert capital into assets that are higher yielding or more volatile. “One part of (bitcoin's rally) has to do with the generally positive sentiment on risk in general," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "You can see that in the all-time high in the S&P 500 and Nasdaq." Investors have lapped up crypto, mega-cap technology stocks and investment-grade corporate bonds in particular this year. Also on Tuesday, gold struck a record high, moving further above $2,100 per ounce in a rally sparked by growing bets for a US interest rate cut in June. "(Cryptocurrencies) are now being used as an alternative to using gold when markets are looking to hedging against increased risks, higher interest rates," said Stuart Cole, chief economist at Equiti Capital. "So no surprise I think that when you see the gold price rallying, cryptos are doing the same.” Analysts say bitcoin also benefited ahead of April's so-called halving event - a process that takes place every four years in which the rate at which tokens are released is cut in half, along with the rewards given to miners. Supply of bitcoin is limited to 21 million, of which 19 million have already been mined. Despite its recent popularity, for many investors, bitcoin is simply too volatile and lacks enough real-world applications to be anything other than a speculative asset. Yet, in addition to the cocktail of flows of money into ETFs, the prospect of constrained bitcoin supply and an eventual decline in U.S. interest rates, some companies are adding crypto to their corporate coffers. Also Read | Bitcoin plummets to $40,000, hits lowest point since ETF debut In February, software firm MicroStrategy - a long time holder of bitcoin - said it had recently bought about 3,000 more bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of bitcoin and ether. On Monday, the number of dollar-pegged stablecoins issued by Tether crossed $100 billion for the first time. Tether issues a stablecoin that is designed to maintain a constant value of $1 and is widely used as a way of moving money in cryptocurrency without being exposed to price swings in other tokens such as bitcoin and ether. The price of ether, the world's second largest cryptocurrency was last trading at $3,706, well below its record high of $4,867 that it touched in November 2021. "Active trader positioning in bitcoin now appears fairly long. Valuations for ether and most other tokens remain below their highs from the previous crypto cycle," said Zach Pandl, head of research at Grayscale Investments. Crypto stocks were trading lower on Tuesday, with shares in Coinbase down 2.5 per cent and shares in crypto miners Riot Platforms and Marathon Digital down 9.7 per cent and 11.1 per cent, respectively.

Bitcoin reaches new record high, tops $69,000 as investors cheer ETFs, rate prospects

Whether it was gangsters a century ago speeding off in faster getaway cars or terrorists and hackers in recent decades who shielded their communications through encrypted apps, criminals have perennially exploited technology to stay a step ahead of law enforcement.

The FBI struck back in the past week with a pair of victories: a seizure of most of the $4 million ransom in Bitcoin that Russian hackers extorted from a US pipeline operator and the announcement of a yearslong sting operation where thousands of suspects were duped into using a messaging app secretly controlled by authorities. More than 800 people were arrested in more than a dozen countries.

Also read |&nbsp;<a href="https://www.wionews.com/world/el-salvador-legalises-bitcoin-as-other-nations-plan-similar-moves-390658">El Salvador legalises Bitcoin as other nations plan similar moves</a>

The breakthroughs came in part because law enforcement officials learned how to leverage two rapidly advancing technologies — encryption and cryptocurrencies — that had previously been a boon for criminals.

Yet the events did little to fundamentally alter the challenges for authorities in an increasingly digital world, according to former law enforcement officials, prosecutors, historians and technology experts. The global sting is highly unlikely to keep criminals from using encryption and could encourage them to go even further underground, experts said. And while the FBI has shown that it can recover stolen cryptocurrencies, doing so requires resources beyond the reach of most law enforcement agencies.

Ultimately, the cases were the latest iteration in the decades-long back and forth between lawbreakers and the FBI in which both sides have seized on technological advances, whether it is criminals hiding behind encryption or investigators exploiting facial recognition, drones and other mechanisms.

Also read |&nbsp;<a href="https://www.wionews.com/technology/uk-police-accidentally-discover-bitcoin-mine-while-searching-for-cannabis-warehouse-388213">UK police accidentally discover Bitcoin mine while searching for cannabis warehouse</a>

“You get a sharper sword; they get a stronger shield. The greed of the bad guys is always stronger than the reach of the good guys,” said Tim Weiner, author of “Enemies: A History of the FBI.” “That’s not just the story of the FBI; it’s been true throughout the history of warfare.”

Now law enforcement agencies are seeking more access to digital devices, sometimes buying hacking tools from the private sector, and urging lawmakers to give them more power to track suspects.

“This does not end the debate on encryption,” said Joseph DeMarco, a former federal prosecutor in Manhattan who has spent years working on cybercrime. “It shows that law enforcement is willing to design flanking maneuvers to go around encryption obstacles. But the debate about whether or not those workarounds are adequate will continue.”

Also read |&nbsp;<a href="https://www.wionews.com/technology/elon-musks-tesla-halts-bitcoin-purchases-amid-concerns-of-increasing-carbon-emissions-384647">Elon Musk's Tesla halts bitcoin purchases amid concerns of increasing carbon emissions</a>

Law Enforcement Gains

Technology has not been all bad for the police. Beyond facial recognition and drones, authorities in the United States use gunshot detectors and devices that simulate cell towers to surreptitiously connect to suspects’ phones and determine their location.

Law enforcement also has an advantage when it gets hold of digital devices. Despite claims from Apple, Google and even the Justice Department that smartphones are largely impenetrable, thousands of law enforcement agencies have tools that can infiltrate the latest phones to extract data.

“Police today are facing a situation of an explosion of data,” said Yossi Carmil, CEO of Cellebrite, an Israeli company that has sold data extraction tools to more than 5,000 law enforcement agencies, including hundreds of small police departments across the United States. “The solutions are there. There is no real challenge to accessing the data.”

Also read |&nbsp;<a href="https://www.wionews.com/world/trump-administration-secretly-seized-phone-records-of-times-reporters-389303">Trump administration secretly seized phone records of Times reporters</a>

The police also have an easier time getting to data stored in the cloud. Technology companies like Apple, Google and Microsoft regularly turn over customers’ personal data, such as photographs, emails, contacts and text messages, to authorities with a warrant.

From January 2013 through June 2020, Apple said, it turned over the contents of tens of thousands of iCloud accounts to US law enforcement in 13,371 cases.

And Friday, Apple said that in 2018, it had unknowingly turned over to the Justice Department the phone records of congressional staff members, their families and at least two members of Congress, including Rep. Adam Schiff, D-Calif., now the chair of the House Intelligence Committee. The subpoena was part of an investigation by the Trump administration into leaks of classified information.

Also read |&nbsp;<a href="https://www.wionews.com/world/apple-is-said-to-have-turned-over-data-on-trumps-white-house-counsel-in-2018-391445">Apple is said to have turned over data on Trump’s White House counsel in 2018</a>

Challenge of Encryption

Yet intercepting communications has remained a troublesome problem for the police. While criminals used to talk over channels that were relatively simple to tap — like phones, emails and basic text messages — most now use encrypted messengers, which are not.

Two of the world’s most popular messaging services, Apple’s iMessage and Facebook’s WhatsApp, use so-called end-to-end encryption, meaning only the sender and receiver can see the messages. Not even the companies have access to their contents, allowing Apple and Facebook to argue that they cannot turn them over to law enforcement.

Authorities’ frustration has prompted them to target smaller encrypted apps favoured by criminals. In July, the police in Europe said they hacked into one called EncroChat, leading to hundreds of arrests.

That pushed many criminals onto a new service, Anom. They had to buy specialized phones with few working features, aside from an app disguised as a calculator. With a code, it would turn into a messaging app, Anom, that claimed to be encrypted.

In fact, the FBI created Anom. The bureau and the Australian police started the operation by persuading an informant to distribute the devices to criminal networks, after which they caught on by word-of-mouth. After three years, Anom had more than 12,000 users.

Criminals felt so comfortable on the service that they stopped using coded language, sending photos of smuggled cocaine shipments and openly planning murders, the police said. And when authorities obtained court approval to surveil any Anom users, they could easily monitor their messages.

But when the police carried out hundreds of arrests and detailed the scheme to news cameras this past week, the ruse was over. Authorities were once again in the dark.

An Attractive Tool for Criminals

For years, Bitcoin and other digital currencies were the coin of choice for international criminal syndicates. The qualities that make cryptocurrencies attractive — decentralization and anonymity — make them great for theft, ransom and selling drugs.

Getting paid used to be the hardest part of holding something or someone hostage, said Ross Anderson, a cybersecurity researcher at the University of Cambridge who studies how the police and criminals use technology.

“It’s easy enough to grab the heiress or her dog, but the problem then is that when you threatened to cut her ear off and asked Mr. Rockefeller to send you a large suitcase full of dollar bills, the police tagged along, or they put a radio transmitter in it,” he said. “With Bitcoin, you can get actually quite substantial extortion amounts, like seven- and eight-figure sums, which can be delivered instantaneously to Russia or North Korea or wherever.”

That new model fueled a surge in ransomware attacks, where hackers take control of a person’s or company’s computers and demand a ransom. Recorded Future, a security company that tracks such attacks, estimated that last year, one attack occurred every eight minutes.

Ransomware attacks have recently hit hospitals, meatpackers, minor league baseball teams and the ferries to Martha’s Vineyard. Many companies pay the ransoms because it is easier and faster than alternative solutions, despite also giving hackers more incentive.

Yet the Colonial Pipeline case showed that the police could also use cryptocurrencies to their advantage. Each transaction is recorded in a public ledger, making the money traceable even as it travels from one anonymous account to the next. That means that law enforcement with enough money and know-how can typically hack into an account and snatch back the money.

But hacking can be expensive and time-consuming, leaving few agencies outside the FBI with the ability to do it.

The 21st-Century Fight

The history of the cat-and-mouse game between the police and criminals is long. In the 1920s, bandits realized that cars could allow them to rob a home or bank and quickly escape to the next county or state, where the police would be less interested in solving the crime.

“It took something like 50 years for the police to catch up with regional crime squads and police national computers and eventually with automatic plate number recognition,” Anderson said. “But for a while, the existence of the car meant that it was a fun time for the gangsters.”

Today, law enforcement’s eagerness to keep up has spawned a rapidly growing industry dedicated to extracting suspects’ communications data. Cellebrite, the Israeli company, said its sales increased 38 per cent in the first quarter to $53 million as more police departments bought its tools to hack into suspects’ phones.

At least 2,000 law enforcement agencies in all 50 states have such tools, including 49 of the 50 largest US police departments, according to Upturn, a Washington nonprofit that investigates how the police use technology.

Still, some of the nation’s top law enforcement officials have asked for more from tech companies and lawmakers. Cyrus Vance Jr., the Manhattan district attorney, told Congress in 2019 that data extraction tools were expensive and unreliable. They can sometimes take weeks or even years to crack into a phone, he said.

“There are many, many serious cases where we can’t access the device in the time period where it is most important for us,” Vance told lawmakers.

Apple said security researchers agreed that the iPhone is the most secure device on the market. Google declined to comment.

Whether it was gangsters a century ago speeding off in faster getaway cars or terrorists and hackers in recent decades who shielded their communications through encrypted apps, criminals have perennially exploited technology to stay a step ahead of law enforcement.

Whether it was gangsters a century ago speeding off in faster getaway cars or terrorists and hackers in recent decades who shielded their communications through encrypted apps, criminals have perennially exploited technology to stay a step ahead of law enforcement. The FBI struck back in the past week with a pair of victories: a seizure of most of the $4 million ransom in Bitcoin that Russian hackers extorted from a US pipeline operator and the announcement of a yearslong sting operation where thousands of suspects were duped into using a messaging app secretly controlled by authorities. More than 800 people were arrested in more than a dozen countries. Also read | El Salvador legalises Bitcoin as other nations plan similar moves The breakthroughs came in part because law enforcement officials learned how to leverage two rapidly advancing technologies — encryption and cryptocurrencies — that had previously been a boon for criminals. Yet the events did little to fundamentally alter the challenges for authorities in an increasingly digital world, according to former law enforcement officials, prosecutors, historians and technology experts. The global sting is highly unlikely to keep criminals from using encryption and could encourage them to go even further underground, experts said. And while the FBI has shown that it can recover stolen cryptocurrencies, doing so requires resources beyond the reach of most law enforcement agencies. Ultimately, the cases were the latest iteration in the decades-long back and forth between lawbreakers and the FBI in which both sides have seized on technological advances, whether it is criminals hiding behind encryption or investigators exploiting facial recognition, drones and other mechanisms. Also read | UK police accidentally discover Bitcoin mine while searching for cannabis warehouse “You get a sharper sword; they get a stronger shield. The greed of the bad guys is always stronger than the reach of the good guys,” said Tim Weiner, author of “Enemies: A History of the FBI.” “That’s not just the story of the FBI; it’s been true throughout the history of warfare.” Now law enforcement agencies are seeking more access to digital devices, sometimes buying hacking tools from the private sector, and urging lawmakers to give them more power to track suspects. “This does not end the debate on encryption,” said Joseph DeMarco, a former federal prosecutor in Manhattan who has spent years working on cybercrime. “It shows that law enforcement is willing to design flanking maneuvers to go around encryption obstacles. But the debate about whether or not those workarounds are adequate will continue.” Also read | Elon Musk's Tesla halts bitcoin purchases amid concerns of increasing carbon emissions Law Enforcement Gains Technology has not been all bad for the police. Beyond facial recognition and drones, authorities in the United States use gunshot detectors and devices that simulate cell towers to surreptitiously connect to suspects’ phones and determine their location. Law enforcement also has an advantage when it gets hold of digital devices. Despite claims from Apple, Google and even the Justice Department that smartphones are largely impenetrable, thousands of law enforcement agencies have tools that can infiltrate the latest phones to extract data. “Police today are facing a situation of an explosion of data,” said Yossi Carmil, CEO of Cellebrite, an Israeli company that has sold data extraction tools to more than 5,000 law enforcement agencies, including hundreds of small police departments across the United States. “The solutions are there. There is no real challenge to accessing the data.” Also read | Trump administration secretly seized phone records of Times reporters The police also have an easier time getting to data stored in the cloud. Technology companies like Apple, Google and Microsoft regularly turn over customers’ personal data, such as photographs, emails, contacts and text messages, to authorities with a warrant. From January 2013 through June 2020, Apple said, it turned over the contents of tens of thousands of iCloud accounts to US law enforcement in 13,371 cases. And Friday, Apple said that in 2018, it had unknowingly turned over to the Justice Department the phone records of congressional staff members, their families and at least two members of Congress, including Rep. Adam Schiff, D-Calif., now the chair of the House Intelligence Committee. The subpoena was part of an investigation by the Trump administration into leaks of classified information. Also read | Apple is said to have turned over data on Trump’s White House counsel in 2018 Challenge of Encryption Yet intercepting communications has remained a troublesome problem for the police. While criminals used to talk over channels that were relatively simple to tap — like phones, emails and basic text messages — most now use encrypted messengers, which are not. Two of the world’s most popular messaging services, Apple’s iMessage and Facebook’s WhatsApp, use so-called end-to-end encryption, meaning only the sender and receiver can see the messages. Not even the companies have access to their contents, allowing Apple and Facebook to argue that they cannot turn them over to law enforcement. Authorities’ frustration has prompted them to target smaller encrypted apps favoured by criminals. In July, the police in Europe said they hacked into one called EncroChat, leading to hundreds of arrests. That pushed many criminals onto a new service, Anom. They had to buy specialized phones with few working features, aside from an app disguised as a calculator. With a code, it would turn into a messaging app, Anom, that claimed to be encrypted. In fact, the FBI created Anom. The bureau and the Australian police started the operation by persuading an informant to distribute the devices to criminal networks, after which they caught on by word-of-mouth. After three years, Anom had more than 12,000 users. Criminals felt so comfortable on the service that they stopped using coded language, sending photos of smuggled cocaine shipments and openly planning murders, the police said. And when authorities obtained court approval to surveil any Anom users, they could easily monitor their messages. But when the police carried out hundreds of arrests and detailed the scheme to news cameras this past week, the ruse was over. Authorities were once again in the dark. An Attractive Tool for Criminals For years, Bitcoin and other digital currencies were the coin of choice for international criminal syndicates. The qualities that make cryptocurrencies attractive — decentralization and anonymity — make them great for theft, ransom and selling drugs. Getting paid used to be the hardest part of holding something or someone hostage, said Ross Anderson, a cybersecurity researcher at the University of Cambridge who studies how the police and criminals use technology. “It’s easy enough to grab the heiress or her dog, but the problem then is that when you threatened to cut her ear off and asked Mr. Rockefeller to send you a large suitcase full of dollar bills, the police tagged along, or they put a radio transmitter in it,” he said. “With Bitcoin, you can get actually quite substantial extortion amounts, like seven- and eight-figure sums, which can be delivered instantaneously to Russia or North Korea or wherever.” That new model fueled a surge in ransomware attacks, where hackers take control of a person’s or company’s computers and demand a ransom. Recorded Future, a security company that tracks such attacks, estimated that last year, one attack occurred every eight minutes. Ransomware attacks have recently hit hospitals, meatpackers, minor league baseball teams and the ferries to Martha’s Vineyard. Many companies pay the ransoms because it is easier and faster than alternative solutions, despite also giving hackers more incentive. Yet the Colonial Pipeline case showed that the police could also use cryptocurrencies to their advantage. Each transaction is recorded in a public ledger, making the money traceable even as it travels from one anonymous account to the next. That means that law enforcement with enough money and know-how can typically hack into an account and snatch back the money. But hacking can be expensive and time-consuming, leaving few agencies outside the FBI with the ability to do it. The 21st-Century Fight The history of the cat-and-mouse game between the police and criminals is long. In the 1920s, bandits realized that cars could allow them to rob a home or bank and quickly escape to the next county or state, where the police would be less interested in solving the crime. “It took something like 50 years for the police to catch up with regional crime squads and police national computers and eventually with automatic plate number recognition,” Anderson said. “But for a while, the existence of the car meant that it was a fun time for the gangsters.” Today, law enforcement’s eagerness to keep up has spawned a rapidly growing industry dedicated to extracting suspects’ communications data. Cellebrite, the Israeli company, said its sales increased 38 per cent in the first quarter to $53 million as more police departments bought its tools to hack into suspects’ phones. At least 2,000 law enforcement agencies in all 50 states have such tools, including 49 of the 50 largest US police departments, according to Upturn, a Washington nonprofit that investigates how the police use technology. Still, some of the nation’s top law enforcement officials have asked for more from tech companies and lawmakers. Cyrus Vance Jr., the Manhattan district attorney, told Congress in 2019 that data extraction tools were expensive and unreliable. They can sometimes take weeks or even years to crack into a phone, he said. “There are many, many serious cases where we can’t access the device in the time period where it is most important for us,” Vance told lawmakers. Apple said security researchers agreed that the iPhone is the most secure device on the market. Google declined to comment.

Bitcoin and encryption: A race between criminals and the FBI

Observing an increase in climate-harming emissions, <a href="https://www.wionews.com/topics/elon-musk?page=1">Elon Musk’s</a> electric car company, <a href="https://www.wionews.com/topics/tesla">Tesla</a>, has decided to temporary suspend payment for cars with bitcoin.

"Tesla has suspended vehicle purchase using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel," Musk&nbsp;said in a statement.

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Tesla &amp; Bitcoin <a href="https://t.co/YSswJmVZhP">pic.twitter.com/YSswJmVZhP</a>
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Also read |&nbsp;<a href="https://www.wionews.com/entertainment/lifestyle/news-elon-musk-reveals-he-has-asperger%E2%80%99s-syndrome-on-%E2%80%98saturday-night-live%E2%80%99-383885" hreflang="en">Elon Musk reveals he has Asperger’s syndrome on ‘Saturday Night Live’</a>

Recently, Tesla shifted towards fulfilling its owner’s dream of making electric cars mainstream and tried to drive people away from combustion engines pumping out emissions contributing to climate change.

In a bid to give a boost to digital currency, in March, the electric car company started accepting bitcoin in exchange for electric cars from Tesla.

Also read |&nbsp;<a href="https://www.wionews.com/technology/elon-musks-tesla-says-it-appears-driver-was-at-the-wheel-in-crash-380728" hreflang="en">Elon Musk's Tesla says it appears driver was at the wheel in crash</a>

"Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this can not come at great cost to the environment," the statement read.

Musk also said that Tesla will not be selling any of its bitcoin and will wait to resume bitcoin purchases and sales only after "mining transitions to more sustainable energy".

Meanwhile, the company is also looking at other options in digital currency that do not harm the environment like bitcoin.

Observing an increase in climate-harming emissions, Elon Musk’s electric car company, Tesla, has decided to temporary suspend payment for cars with bitcoin. "Tesla has suspended vehicle purchase using Bitcoin.

Observing an increase in climate-harming emissions, Elon Musk’s electric car company, Tesla, has decided to temporary suspend payment for cars with bitcoin. "Tesla has suspended vehicle purchase using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel," Musk said in a statement. Tesla & Bitcoin pic.twitter.com/YSswJmVZhP — Elon Musk (@elonmusk) May 12, 2021 × Also read | Elon Musk reveals he has Asperger’s syndrome on ‘Saturday Night Live’ Recently, Tesla shifted towards fulfilling its owner’s dream of making electric cars mainstream and tried to drive people away from combustion engines pumping out emissions contributing to climate change. In a bid to give a boost to digital currency, in March, the electric car company started accepting bitcoin in exchange for electric cars from Tesla. Also read | Elon Musk's Tesla says it appears driver was at the wheel in crash "Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this can not come at great cost to the environment," the statement read. Musk also said that Tesla will not be selling any of its bitcoin and will wait to resume bitcoin purchases and sales only after "mining transitions to more sustainable energy". Meanwhile, the company is also looking at other options in digital currency that do not harm the environment like bitcoin.

Elon Musk's Tesla halts bitcoin purchases amid concerns of increasing carbon emissions

Cryptocurrency Bitcoin on Tuesday rose above $50,000 for the first time ever.&nbsp;

The record high stood at $50,602, and has risen by 72 per cent this year. Most of the gains were recorded after Tesla, the carmaking giant said that it had bought $1.5 billion in the cryptocurrency.

The currency is quickly gaining acceptance by investors across the board. In addition, Tesla said that it would now accept the currency as payment.

On February 8, Bitcoin hit its previous record-high above $43,000 &nbsp;after electric carmaker Tesla invested $1.5 billion in the digital currency. The cryptocurrency has been up by around 50 per cent since the start of the year.

Also read:&nbsp;<a href="http://13.235.153.162/business-economy/india-mulls-bitcoin-ban-existing-investors-to-get-transition-period-363262" hreflang="en">India mulls Bitcoin ban, existing investors to get transition period</a>

Bitcoin hit $43,725.51 around 1300 GMT on February 8, before cooling slightly to $42,352.&nbsp;

Tesla's decision came just days after CEO Elon Musk changed his Twitter bio to simply read "#bitcoin." The announcement came in a US Securities and Exchange Commission document.

Tesla said in a filing the decision was part of its broad investment policy as a company and was aimed at diversifying and maximising its returns on cash. It said it had invested an aggregate $1.5 billion in bitcoin under the changed policy and could "acquire and hold digital assets from time to time or long-term".

It is now expected that Tesla would soon begin accepting payment for its cars and other products with bitcoin in the near future.

Cryptocurrency Bitcoin on Tuesday rose above $50,000 for the first time ever. The record high stood at $50,602, and has risen by 72 per cent this year. Most of the gains were recorded after Tesla, the carmaking giant said that it had bought $1.

Cryptocurrency Bitcoin on Tuesday rose above $50,000 for the first time ever. The record high stood at $50,602, and has risen by 72 per cent this year. Most of the gains were recorded after Tesla, the carmaking giant said that it had bought $1.5 billion in the cryptocurrency. The currency is quickly gaining acceptance by investors across the board. In addition, Tesla said that it would now accept the currency as payment. On February 8, Bitcoin hit its previous record-high above $43,000 after electric carmaker Tesla invested $1.5 billion in the digital currency. The cryptocurrency has been up by around 50 per cent since the start of the year. Also read: India mulls Bitcoin ban, existing investors to get transition period Bitcoin hit $43,725.51 around 1300 GMT on February 8, before cooling slightly to $42,352. Tesla's decision came just days after CEO Elon Musk changed his Twitter bio to simply read "#bitcoin." The announcement came in a US Securities and Exchange Commission document. Tesla said in a filing the decision was part of its broad investment policy as a company and was aimed at diversifying and maximising its returns on cash. It said it had invested an aggregate $1.5 billion in bitcoin under the changed policy and could "acquire and hold digital assets from time to time or long-term". It is now expected that Tesla would soon begin accepting payment for its cars and other products with bitcoin in the near future.

Bitcoin rises above $50,000 for the first time ever