Connect with us

CNBC

As much as $365 billion wiped off cryptocurrency market after Tesla stops car purchases with bitcoin

Tesla CEO Elon Musk said Tesla would suspend car purchases using bitcoin, wiping off billions of dollars of value from the cryptocurrency market.

Published

on

Artur Widak | NurPhoto | Getty Images

GUANGZHOU, China — Hundreds of billions of 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.

At around 6:06 a.m. Singapore time on Thursday when Musk made the announcement, the value of the whole cryptocurrency market stood at around $2.43 trillion, according to data from Coinmarketcap.com.

Around 8:45 a.m., the market capitalization had dropped to around $2.06 trillion, wiping off around $365.85 billion. The market has pared some losses. Since Musk’s tweet, the cryptocurrency market had seen $165.75 billion wiped off its value at around 9:22 a.m. Singapore time.

In February, Tesla announced in a regulatory filing that it had purchased $1.5 billion worth of bitcoin and planned to accept the cryptocurrency for payments.

Musk cited environmental concerns on Thursday and said Tesla is “concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

Bitcoin is not issued by a single entity like a central bank. Instead, it is maintained by a network of so-called “miners.” These miners use purpose-built computers that require a lot of energy to solve complex mathematical puzzles in order for bitcoin transactions to go through. Bitcoin’s energy consumption is larger than some individual countries.

At around 9:34 a.m. Singapore time, bitcoin was down over 12%, dipping below the $50,000 mark for the first time since Apr. 24, according to CoinDesk data. Despite the recent pullback, bitcoin is still up over 400% in the last 12 months.

Other cryptocurrencies ether and XRP were also sharply lower.

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.

Around 8:45 a.m., the market capitalization had dropped to around $2.06 trillion, wiping off around $365.85 billion. The market has pared some losses. Since Musk’s tweet, the cryptocurrency market had seen $165.75 billion wiped off its value at around 9:22 a.m. Singapore time.

Source: https://www.cnbc.com/2021/05/13/bitcoin-btc-price-falls-after-tesla-stops-car-purchases-with-crypto.html

as-much-as-$365-billion-wiped-off-cryptocurrency-market-after-tesla-stops-car-purchases-with-bitcoin

CNBC

Earnings

Corporate Company Earnings, Find Earnings Per Share and Earnings History Online

Published

on

© 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Market Data Terms of Use and Disclaimers

Data also provided by Reuters

Source: https://www.cnbc.com/earnings/

earnings

Continue Reading

CNBC

International: Top News And Analysis

CNBC International is the world leader for news on business, technology, China, trade, oil prices, the Middle East and markets.

Published

on

© 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Market Data Terms of Use and Disclaimers

Data also provided by Reuters

Source: https://www.cnbc.com/us-top-news-and-analysis/

international:-top-news-and-analysis

Continue Reading

CNBC

Earnings

Corporate Company Earnings, Find Earnings Per Share and Earnings History Online

Published

on

© 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Market Data Terms of Use and Disclaimers

Data also provided by Reuters

Source: https://www.cnbc.com/earnings/

earnings

Continue Reading

Title

Cointelegraph16 hours ago

The future of DeFi is spread across multiple blockchains

Creating interoperability, not competition: Multichain solutions will positively impact the blockchain space in terms of accessibility, innovation and economic viability.

Ventureburn1 day ago

ZwartTech launches Talent Foundation to equip Africans with digital skills

Lagos-based ZwartTech has announced the launch of its new edtech, Zwart Talent Foundation (ZTF) in a statement on 30 July...

CNBC3 days ago

Earnings

Corporate Company Earnings, Find Earnings Per Share and Earnings History Online

Bioengineer4 days ago

Reduced microbial stability linked to soil carbon loss in active layer under alpine permafrost degra

Credit: NIEER Chinese researchers have recently discovered links between reduction in microbial stability and soil carbon loss in the active

Reuters6 days ago

Chipmaker TSMC says too early to say on Germany expansion

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW) said on Monday that it was too early to say whether it will...

Bioengineer7 days ago

SNMMI Image of the Year: PET imaging measures cognitive impairment in COVID-19 patients

Credit: G Blazhenets et al., Department of Nuclear Medicine, Medical Center - University of Freiburg, Faculty of Medicine, University of

Techcrunch7 days ago

The DL on CockroachDB – TechCrunch

As college students at Berkeley, Spencer Kimball and Peter Mattis created a successful open-source graphics program, GIMP, which got the...

CNBC1 week ago

International: Top News And Analysis

CNBC International is the world leader for news on business, technology, China, trade, oil prices, the Middle East and markets.

Blockchain news1 week ago

Ethereum is Expected to Undergo a 90% Daily Emission Reduction Following ETH 2.0 Upgrade

Market analyst Lark Davis believes that Ethereum 2.0 upgrade will prompt a 90% daily emission reduction from 12,800 to 1,280.

Reuters1 week ago

EXCLUSIVE India watchdog accuses Amazon of concealing facts in deal for Future Group unit

India's antitrust regulator has accused Amazon.com Inc (AMZN.O) of concealing facts and making false submissions when it sought approval for...

Review

    Select language

    Trending