A crypto tornado might be the best phrase to describe the situation in the crypto market after the tweets of billionaire, Elon Musk.
Over $200 billion got wiped momentarily off the crypto market as Bitcoin lost over $6,000 within hours after failing to break above $50,000.
The past week can be best described as dreadful for many crypto investors with one of the most powerful billionaires revealing Tesla’s decision to stop accepting the flagship crypto as a means of payment for its electric cars, triggering record sell-offs.
Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings.
With the amount of hate @elonmusk is getting, I wouldn’t blame him…
— Mr. Whale (@CryptoWhale) May 16, 2021
At press time, the flagship crypto asset, Bitcoin traded at $43,167 posting losses of about 10% for the day with its weekly losses standing at 26%. it was Bitcoin’s biggest one-day percentage drop since five days ago.
The record sell-offs seen lately in the crypto market pushed Bitcoin’s market value down to $824 billion or about 40.11% of the total crypto market capitalization. It is important to note that at its highest level, Bitcoin’s market value stood at $1.18 trillion.
Present price actions reveal that the crypto market is showing no signs of abating, amid record profit-taking in play after the stall of overall bullish momentum lately combined with growing concerns on regulation and Bitcoin’s environmental costs, thus weighing hard on digital assets valuation.
Sell-offs got strengthened when Elon Musk recently pointed out the environmental damage caused by Bitcoin mining operations.
In addition, bullish sentiments towards digital assets also got weakened after it was revealed that Tesla might indeed diversify its Bitcoin holdings.
Leading altcoin like Ethereum posted recorded losses as it dropped below the $3,500 price levels with Cardano, XRP, Internet Computer, and Polkadot all printing losses of more than 10%.