The price of bitcoin (CRYPTO: BTC) surged to all-time highs early Monday morning, causing stocks like fintech company Square (NYSE: SQ) to rise as well. Square stock rose 8% for the session.
The price of bitcoin is influenced by supply and demand. And demand appears to be growing. This morning, Tesla announced that it bought $1.5 billion in bitcoin tokens during January. Companies like MicroStrategy had done this long before Tesla, but Tesla is a large-cap stock and a member of the S&P 500. Now that this high-profile company is converting some of its balance sheet into bitcoin tokens, it could be a sign other companies will soon follow.