The price of bitcoin smashed through $40,000 today to hit new record highs amid reports that Apple Inc. could be interested in the cryptocurrency and Tesla Inc. had purchased $1.5 billion in bitcoin.

Although bitcoin first broke through the $40,000 mark in January, its price had varied since from just below $30,000 through to nearly $40,000 before briefly hitting at $40,664.55 on Feb. 6. Then today it peaked at $47,143.38 at 7:14 p.m. EST before dropping slightly to $45,767.15 at 10:09 pm. EST.

Though it’s often uncertain what’s behind bitcoin’s price increase, there was no question there today: Elon Musk (pictured).

Tesla stated in its annual report filed with the U.S. Securities and Exchange today that it has put an aggregate of $1.5 billion into bitcoin under a new investment policy and that the company may “acquire and hold digital assets from time to time in the long term.” CNBC reported that Tesla also said it will start accepting payments in bitcoin in exchange for its products “subject to applicable laws and initially on a limited basis” making it the first major automotive make to do so.

The Elon Musk affect was not alone in the mania surrounding bitcoin, however. Musk’s pro-bitcoin stance is not new, but straight out of left center is a report that Apple might be considering entering the cryptocurrency business as well.

Whether Apple is interested in entering the cryptocurrency market is speculative. The idea about Apple and cryptocurrency came from a note to investors from Mitch Steves at RBC that stated that Apple’s share price could increase 25% if it adds support for cryptocurrencies to its Wallet app.

”The wallet initiative appears to be a clear multibillion-dollar opportunity for the firm (potential for well over $40 billion in annual revenue with limited R&D)” by adding support for cryptocurrencies, Steves said in the investor note. He added that if Apple went down this path, the move would likely make the U.S. a global leader in crypto assets, lessening the possibility of a government shutdown of the industry, according to Reuters.

“If the USA owns the most crypto assets (be it Bitcoin or other assets), it would not make logical sense in our view to ban it,” Steves added.

Apple has not formally responded to the reports, but Jennifer Bailey, vice president of Apple Pay, said in September at a private event that “we’re watching cryptocurrency. We think it’s interesting. We think it has interesting long-term potential.”

Photo: JD Lassica/Wikimedia Commons