Elon Musk announced that Bitcoin would no longer be accepted as payment for Teslas . The effects of this announcement have caused Bitcoin's value to drop considerably.
The value of major cryptocurrencies such as Ethereum and Bitcoin is highly fluctuating, almost becoming a bubble waiting to burst after reaching all-time highs. The price is very prone to being affected by small changes in the market, even something as unexpected as a tweet from Elon Musk that Tesla will not accept them to buy its electric cars.
Devaluation of $ 8 per unit for a tweet by Elon Musk
Although in reality it is not just a simple tweet of Musk making a joke. This is an advertisement that he placed on his personal account in which he stated that Tesla will not accept Bitcoin to buy an electric car. One of the electric car brands not accepting a cryptocurrency has immediately affected its value on the exchange.
Within a few minutes of that tweet, the value of Bitcoin started to drop from about $ 58 to now worth just over $ 000. It was expected that some drop would happen, but this turns out to closely follow the announcement of Musk and Tesla. The rest of cryptocurrencies have also been affected. For example, Ethereum has gone from being worth $ 50 to now worth about $ 000.
Between declining to sell Tesla cars for Bitcoin and trying to fund a space mission with Dogecoin, it's easy to see that Musk wants to leverage his prominence in the tech world to artificially influence the cryptocurrency market. All to boost the value of his portfolios. It also demonstrates the extreme volatility of cryptocurrencies, since a couple of announcements about limiting their commercial use or about regulating and taxing them in the United States can cause them all to lose value constantly.