The crypto market is down today, with a “crypto crash” taking place that has seen the value of cryptocurrency plummet overnight. This was largely due to a tweet from Elon Musk, who revealed that Tesla would no longer support Bitcoin.
Crypto Market Down Today: Why is there a crypto crash?
Bitcoin’s value has nosedived, wiping over $100 billion from its value largely as a result of Elon Musk. The Tesla CEO tweeted that the company would no longer accept Bitcoin in sales of its electric vehicles, due to growing concerns over the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions.”
Following this tweet, Bitcoin’s value plummeted from over $52,000 USD per coin to $47,000. It has now picked up somewhat, regaining to $50,000, though is still far from the $56,000 height it achieved in April.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Bitcoin’s crash also comes at a time when other cryptocurrencies are facing a particularly turbulent week. Dogecoin, which has been celebrated by Musk who has been its most influential advocate thus far, dropped from $0.49 per coin to $0.37. It has also regained its momentum, though has still declined compared to its lofty $0.72 highs earlier this week, when investors had predicted that Musk’s appearance on Saturday Night Live would boost its value (the opposite happened, with it plummeting to $0.45).
Shiba Inu coin, a lesser-known cryptocurrency that started gaining traction this week due to its similarities to Dogecoin, also dropped from $0.02 to $0.018. As we explained, this isn’t a figure that’s beyond recovery, even if crypto investors are growing wary by the sudden fluctuations in the market.
Cryptocurrency has always been a volatile market, but the increased backlash against Bitcoin mining and Elon Musk’s pushback against it could spell trouble. Musk has been a big proponent of crypto, so him singling out Bitcoin isn’t good news for its ongoing viability in the market.