Update (0815ET): Wedbush celebrity tech analyst Dan Ives, known for being one of Apple's biggest champions on the Street, has hailed Tesla's decision to start accepting payment in bitcoin as "a seminal moment" for both Tesla, and bitcoin.

Ives shared his view on Tesla's decision in a note to clients Wednesday, a copy of which was obtained by Bloomberg. In it, he said he expects less than 5% of Tesla's transactions will involve bitcoin over the next 12-to-18 months, although over time, as crypto sees greater adoption, that number could rise.

"Tesla accepting bitcoin as a form of payment for its products/cars is a potential game changing move for the use of Bitcoin from a transactional perspective," the analyst said.