[Bitcoin Now] Tesla's Large Purchase Drives Price Surge to 49 Million Won Range

Concerns Over Volatility Exposure of US S&P 500 to Virtual Currencies

Washington DC Tesla dealership garage scene photographed on the 8th [Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Following news that Tesla plans to purchase approximately $1.5 billion worth of Bitcoin, the leading cryptocurrency, its price surged from the 42 million KRW range the previous day to the 49 million KRW range. Concerns have also arisen that Tesla could introduce volatility to the U.S. stock market where it is listed.

According to the domestic cryptocurrency exchange Upbit, as of 10:21 a.m. on the 9th, Bitcoin was priced at 49,338,000 KRW, up about 0.55% compared to the previous day. Until 9:42 p.m. the previous day, it was in the low 42 million KRW range, but it sharply rose to 49,278,000 KRW at 8:25 a.m. that day.

The news that Tesla is purchasing $1.5 billion worth of Bitcoin acted as a positive catalyst. On the 8th (local time), according to the U.S. economic media CNBC, Tesla explained in a report submitted to the U.S. Securities and Exchange Commission (SEC) that it "purchased Bitcoin to diversify cash returns and increase flexibility."

Among major automobile companies, Tesla is the first to decide to buy Bitcoin. Going forward, Tesla plans to use Bitcoin as a payment method for electric vehicles. Dan Ives, an analyst at Wedbush Securities, told CNBC, "This is a decision that will have ripple effects on other companies," adding, "It could be a game changer as Bitcoin usage increases in the future."

With this decision, Tesla immediately ranked among the top private companies holding Bitcoin. According to cryptocurrency data firm Bitcoin Treasuries, as of the 8th (local time), Tesla ranked second among private companies in Bitcoin holdings, following U.S. software consulting firm MicroStrategy. MicroStrategy holds a total of $3.1 billion worth of Bitcoin.

At the same time, concerns have emerged that the flagship index of the New York stock market, the S&P 500, is exposed to cryptocurrency volatility. On the 8th (local time), U.S. economic media Bloomberg reported that Tesla, which accounts for about 2% of the S&P 500, invested in Bitcoin, thereby exposing investors to volatility. According to Bloomberg, Bitcoin showed an average daily volatility of 5.2% this year, more than six times that of gold (0.8%), an alternative asset. Jay-Jay Kinahan, Chief Market Strategist at U.S. online brokerage TD Ameritrade, pointed out, "Tesla's decision could increase the volatility of the S&P 500 index."

This content was produced with the assistance of AI translation services.