Bitcoin (BTC) Falls from Highs as Musk Says Prices 'Seem High'

February 22, 2021 7:16 AM EST

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Bitcoin (BTC) price is trading below the $54,000 mark today after the price action pulled back from a fresh record high at $58,354.

On Saturday, Tesla’s (NASDAQ: TSLA) Elon Musk said that Bitcoin prices "seem high" as the world’s largest cryptocurrency continued to push higher.

“Money is just data that allows us to avoid the inconvenience of barter. That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both,” Musk tweeted, before adding “that said, BTC & ETH do seem high lol.”

Bitcoin investors should take heart in the fact that Musk said Tesla shares were too high multiple times and shares just raced higher anyway.

Tesla announced on February 8th that it bought $1.5 billion in Bitcoin and it will start allowing cryptocurrency payments soon. This prompted another crypto buying wave sending numerous altcoins, including the world’s second largest cryptocurrency Ethereum (ETH), to all-time highs.

In a weekend memo sent to clients, Wedbush’s Dan Inves calculated that Tesla has already made a profit of about $1 billion on its $1.5 billion Bitcoin. This way, the company is on track to make more from its Bitcoin investment than profits from selling its EV cars in 2020.

"It’s clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months," Ives stressed.

Still, the analyst expects just 5% of public companies to follow Musk and Tesla into Bitcoin.

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