Tesla investment fuels bitcoin rally even as experts see profit booking

Bitcoin prices on Tuesday surged past $48,000—marking a first—after American electric-car maker Tesla Inc said it has invested $1.5 billion in the digital asset. It is by far the biggest company yet to back the cryptocurrency platform.

Tesla revealed the position after its chief executive officer Elon Musk came out in support of bitcoin and a lesser-known cryptocurrency, dogecoin.

The rally in bitcoin prices following the announcement helped the cryptocurrency surpass Tesla’s market capitalization of around $869 billion to touch $888 billion.