Tesla And Ethereum Billionaires Spark Shock $300 Billion Crypto Price Crash As Bitcoin And Dogecoin Suddenly Plummet
The bitcoin and cryptocurrency markets plunged by nearly $ 300 billion overnight after Tesla's billionaire Elon Musk and Ethereum co-founder Vitalik Butirin sent shockwaves through the sector.
The price of bitcoin is briefly lower than the $ 50,000 per bitcoin level before it fell, while Dogcoin, a meme-based cryptocurrency that has exploded in popularity in recent months, has 10 in the crypto market. Decreased with a fall of%.
There was a sharp drop by Butirin, the world's youngest well-known crypto billionaire, suddenly running over $ 2 billion of cryptocurrency and then being overhauled by Tesla billionaire Elon Musk to buy Tesla cars from Bitcoin's customers Pulling the plug on use.
Yesterday, Buterin donated $ 1 billion in DogCoin-inspired mem tokens to the India Kovid Relief Fund and other charities category and took $ 1.3 billion of Ethereum's ether tokens from a separate wallet address from its main address.
The moves caused Ethereum's co-founder to worry about capitalizing on its vast cryptocurrency holdings, knocking the Ethereum value from its recent elevation token of $ 4,000 per ether and sending DogCoin sharply lower.
The cryptocurrency market has a balloon of more than $ 2 trillion this year, with bitcoin — the world's largest cryptocurrency — now sporting a market capitalization of about 1 trillion. The growth of the crypto market has also been supported by rising Ethereum value and Dogcoin's meme-driven, speculative frenzy.
Tesla's chief executive and longtime bitcoin supporter Elon Musk announced that his company would stop customers' use of bitcoins to buy their vehicles.
"Cryptocurrency is a good idea on many levels and we believe it has a promising future, but it cannot be of great value to the environment," Musk said via Twitter.
Kasturi, who helped the bitcoin price climb, rose to more than $ 60,000 with his support earlier this year, citing environmental concerns surrounding those who secure the bitcoin network as miners Known, power their machines.
In February, Tesla revealed that it had bought $ 1.5 billion worth of bitcoins and began accepting bitcoins as payment for cars in March, with bitcoin prices up 20%.
FXPro senior financial analyst Alex Kuptsevich said, "Elon Musk has the ability to pump or dump the price of bitcoin. Sold some of his bitcoins and warnings that" could set off an even awful sale. "
"This heavy reliance on the entire market outlook on the statements of a major investor is a huge gap for the crypto market, demonstrating its vulnerability. It should be noted that the decline of bitcoin coincided with the improvement of the S&P 500, Investors once again prove that. The structure of the two markets can be well correlated. "
However, Musk had said that Telsa would continue to place bitcoins on its balance sheet and hopes to resume bitcoin transactions in the future. He added the company, which reportedly owns a multi-billion dollar U.S. Renewable debt is hoping to enter the market, looking for other cryptocurrencies that have less environmental impact.
"We are also looking at other cryptocurrencies that use <1% of bitcoin's energy / transactions," Musk said.
The price of bitcoin fell almost 17% shortly after the bombardment of the musk before the bitcoin plummeted. Meanwhile, Tesla's stock price also fell during hour trading.
Tesla and bitcoin were always strange bedflows, given the environmental goodwill of the electric car making company and the enormous amount of energy consumed by the cryptocurrency, said Lath Khalaf, financial analyst at brokerage AJ Bell.
"Environmental issues are an incredibly sensitive topic right now, and Tesla's move could serve as a wake-up call for businesses and consumers using bitcoin who didn't consider their carbon footprint. Tesla It would have earned $ 101 million from selling bitcoin. The first three months of the year, but now investors would legitimately ask if that money could have been spent elsewhere.