A continuous drop in the crypto market, especially in Bitcoin, has been spotted for a month. On April 17, 2021, Bitcoin was at $62,574. The downfall in the coin was highly speculated to lift by the middle of the month. But, before the prediction could come true, Elon Musk tweeted that Tesla would not accept Bitcoin anymore. The tweet was nothing less than chaos in the market, and the same led to a $365.85 billion wipe-off. On May 13, 2020, Bitcoin exhibited a sharp fall from $54,819 to $45,700, then the market cap was around $936,725,969,558.95.
The last two days in Bitcoin were sluggish, with a marginal improvement on the chart. The major fall took place today. The coin is currently at $45,280.92. The indicated 24-hour volume is set at $81,603,584,385 USD. Bitcoin has fallen by 8.28% in the last 24 hours. The market cap of Bitcoin is $847,301,647,782. The circulating supply of BTC is around 18,712,112 BTC coins and with a maximum supply of 21,000,000 BTC coins.
Elon Musk’s Tweet sparked rumors of complete sell-off
Elon Musk, CEO of Tesla, has always promoted Bitcoin and Dogecoin. Around the first quarter of the year, he announced accepting Bitcoin as payments and purchased $1.5 billion Bitcoins. Thus, when Elon tweeted that Tesla won’t accept Bitcoin as payment, the same was very shocking for the market, although his decision was based on the carbon footprint of the coin. He added that Tesla would start accepting cryptocurrencies again but once they start using more sustainable resources.
All this sparked concerns regarding the future of cryptocurrencies. T Rowe Price’s president and head of investments, Rob Sharps, highlighted that today the coin is trading around $44,000. The price is $20,000 less than the record high Bitcoin hit a month ago. He said that Crypto holds a high impact across the capital market, and yet the mandates managed by us are not well suited for investing in cryptocurrencies.
Norwegian oil mogul, Kjell Inge Rokke, tweeted regarding the volatility issue and quoted fluctuation in Bitcoin will go hand in hand. He said as he believes in long-term functionality; therefore, the instability doesn’t bother him.
In reply to Musk’s suspension of Bitcoin, he said that Elon’s comment hasn’t changed anything. Being said that, Sean Ono Lennon, son of John Lennon, who considers Bitcoin empowering, takes a dig at wasteful consumers complaining in context to Bitcoin’s coal consumption.
He tweeted: People wear jeans, consume coffee, drive cars, take flights, and use cellphones and complain about Bitcoin electricity use. He pointed out that consumerism is a much bigger problem than Bitcoin’s energy consumption.
Other asset managers saw Bitcoin over the decade and pointed out that the coin fails to combat the instabilities despite multiple efforts. The investors expected lowered volatility in the market, but the same is not likely to occur any time soon.
