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Bitcoin collapsed by as much as 15% yesterday, after Tesla CEO Elon Musk announced that they are suspending Bitcoin purchases.
In a Twitter post, Musk said they are concerned about the massive use of fossil fuel Bitcoin mining and transactions consume. But he noted that Tesla could accept other cryptocurrencies provided that they are much less energy intensive. They are also not selling the Bitcoins it owns.
BTC fell to $ 46,000, but then pulled up slightly. And this morning, it is trading at $ 51,210.
Other tokens, such as Ethereum and Dogecoin, also dropped. The rush to sell briefly caused disruptions on some cryptocurrency exchanges.
Earlier in February, Tesla announced it invested $ 1.5 billion in Bitcoin. They also said they plan to accept the cryptocurrency as a form of payment.
As a result, BTC jumped 16%, the biggest one-day gain observed since the start of the COVID-19 crisis.
Then, it rose even higher when Mastercard, BNY Mellon and other firms have taken steps to make it easier for customers to use or invest in cryptocurrencies. Bitcoin soared from $ 29,000 to almost $ 65,000 in April.
In fact, Tesla CFO Zach Kirkhorn said: "Tesla believes in the long-term value of Bitcoin and plans to hoard tokens from customer transactions."
But Musk's tweet on Wednesday set off a collapse in Bitcoin. It continues to fall even today.
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