They say words have power. How does it feel to have powers to move global markets by a single statement or decision? That is what billionaire and Tesla founder Elon Musk just did to Bitcoin.
More than 365 billion dollars were wiped off the entire cryptocurrency market after Tesla CEO Elon Musk tweeted that the electric vehicle maker would suspend car purchases using Bitcoin. The announcement has shaken the whole market.
When Musk made the announcement, the value of the whole cryptocurrency market stood at around $2.43 trillion. 30 minutes later, the market capitalization had dropped to around $2.06 trillion, wiping off around $365.85 billion.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
The market has pared some losses. Since Musk’s tweet, the cryptocurrency market had seen $165.75 billion wiped off its value and it is still falling.
Musk has been a big proponent of digital currencies including bitcoin and dogecoin, helping to drive their prices higher in recent months.
The Tesla CEO said the company will not be selling any bitcoin and intends to use it for transactions “as soon as mining transitions to more sustainable energy.”
Bitcoin has garnered interest in the last year as companies such as Square and Tesla announced bitcoin purchases and large institutional investors entered the cryptocurrency space. Major investment banks like Goldman Sachs and Morgan Stanley have also sought ways to allow their wealthy clients to get bitcoin exposure.
Do you want Tesla to accept Doge?
— Elon Musk (@elonmusk) May 11, 2021