Updated Feb 23, 2021 | 15:55 IST
Replying to American stockbroker and cryptocurrency critic Peter Schiff, Elon Musk said prices of Ethereum and Bitcoin seem high after which Bitcoin witnessed a sharp sell-off Tesla CEO Elon Musk | Photo Credit: PTI
Key Highlights
Tesla stock witnessed its biggest single-day decline since September 2020 on Monday
Tesla earlier in February announced it holds $1.5 billion worth of Bitcoin in an SEC filing, adding, it will accept the digital currency to sell its products in future
Amazon’s Jeff Bezos regained number 1 spot on Bloomberg Billionaire Index with a net worth of $186 billion topping Musk’s $183 billion fortune
“When fiat currency has negative real interest, only a fool wouldnt look elsewhere,” Musk said in a reference to the sub-zero returns on cash caused by negative-yielding debt. The comments pushed Bitcoin to a record on Friday, with prices climbing above $52,000.
Gundlachs comments are another sign the investment case for Bitcoin is winning over institutional money managers and possibly siphoning cash from the gold market.
The world s biggest digital currency, which has a market capitalization of over $900 billion, hit a record $51,721.15, fueled by signs that it is winning acceptance among mainstream investors and companies, such as Tesla, Mastercard and BNY Mellon.
The largest cryptocurrency rose as much as 4.8% to about $50,927, according to a composite of prices compiled by Bloomberg. The token is up more than fivefold in the past year.