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"You would now be able to purchase a Tesla with Bitcoin," Musk composed on Twitter soon after 7am UK time on Wednesday.

Tycoon Musk said bitcoin would be acknowledged in the United States and "will be held as Bitcoin, not changed over to fiat money."

Bitcoin was up 3% against the dollar to $55,444.21 (BTC-USD) soon after the tweet. Neil Wilson, boss market examiner at Markets.com, said there was a "perceivable supported meeting after Musk tweeted".

Bitcoin spiked after Elon Musk's tweet. Photograph: Yahoo Finance UK

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