Bitcoin price: Crypto plummets 13% after Elon Musk Tesla tweet … Thu, 13 May 2021 08:00:00 +0100-The whole crypto market has crashed after just one tweet from Elon Musk.
The whole crypto market has crashed after just one tweet from Elon Musk.
Mr Musk said that the decision had been made because of the vast amount of energy used by bitcoin. He said that he still thought cryptocurrency “is a good idea on many levels”, that Tesla would use bitcoin again if its energy became more clean, and that it would explore other digital currencies – but that for now Tesla would switch back to only taking conventional payments.
It followed other warnings of “caution” from Mr Musk. Before his appearance on Saturday Night Live last week – which appeared to drive up prices of a range of digital currencies, apparently in the hope that Mr Musk would boost them during the show – he advised that people should be careful about their investments.
The announcement immediately led bitcoin to fall. It has now dropped almost 12 per cent over past 24 hours, wiping more than $100 billion off its value.
Just as notable, however, was how much the announcement seemed to affect other cryptocurrencies.
Ethereum, for instance, had enjoyed a strong run that had pushed up its value considerably. But it also dropped more than 12 per cent.
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That did not entirely erase its recent gains – it is still up 8 per cent over the last week – but meant its price took a considerable hit.
Dogecoin also dropped rapidly, presumably in part because Mr Musk has until now been a cheerleader for the currency. It has fallen 20 per cent over the last 24 hours, and 34 per cent in the last week – especially dramatic after a gradual increase that had seen it outpace bitcoin’s growth by more than 100 times over 2021.
Its fall was despite the fact that dogecoin uses relatively small amounts of energy when compared with bitcoin, and was not specifically mentioned by Mr Musk in his post.
The only major cryptocurrency to see gains over the day was cardano, which is up 8.6 per cent over the last week. Those gains continued over Thursday, which saw it up 2.6 per cent.
Crypto price crash: Dogecoin, bitcoin, ethereum and cardano all … Thu, 13 May 2021 08:00:00 +0100-BITCOIN price has continued to fall in recent hours by up to 13 percent, after Tesla CEO Elon Musk tweeted that the car manufacturer will no longer be accepting …
Bitcoin has seen a sudden drop in value over the past few hours, with a single Bitcoin down by more than $7,000 (£5,000). The drop was largely linked to Elon Musk's tweet confirming that Tesla won't be accepting the cryptocurrency as payment any longer.
Bitcoin is a type of cryptocurrency that was first invented in 2008.
It's a decentralised digital currency, which means it doesn't need a central bank to oversee transfers.
Bitcoins were created as a reward for digital mining – a type of record-keeping that uses large amounts of computer processing power.
But mining has a relatively large carbon footprint as it uses a lot of electricity.
Bitcoin price: Crypto value falls 13% after Elon Musk's Tesla tweet – should you buy Bitcoin? (Image: GETTY Images/Twitter (@elonmusk))
Musk tweeted that Tesla wouldn't be using Bitcoin as a type of payment anymore, owing to climate change fears.
“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” he said.
“Cryptocurrency is a good idea… but this cannot come at great cost to the environment.
“Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy.”
After Tesla's announcement, Bitcoin saw a sudden drop in value.
Shortly before Musk tweeted, Bitcoin was trading at around $54,602.
But just over two hours later, the price had fallen to $47,720.
It was the lowest price for Bitcoin since April 25, when it hit a new low of $47,273.
But, the crypto has still seen a 75 percent rise in value since January, and this time last year was worth less than $10,000.
Bitcoin price: Bitcoin is highly volatile and there's no guarantee of success (Image: GETTY Images)
– May 13, 2021
BITCOIN price Crypto price crash Dogecoin bitcoin ethereum and cardano all