Why the prices of cryptocurrencies are falling?

A single tweet by Elon Musk has the power to affect the crypto market. Elon Musk is the CEO of Tesla that has invested a great sum of money in Bitcoin and often tweets about it. Currently, this billionaire has been tweeting a lot about cryptocurrencies that are in trend and is held responsible for sending the prices of Ethereum, Bitcoin, and Dogecoin up and down. The tweets made by Musk aren’t posted for his own financial gain, but it greatly affects all the investors of crypto space. Even investors also question the market that easily gets swayed.

In the past few weeks, there have been multiple tweets made by Musk on cryptocurrencies that have impacted the price of Bitcoin. On 13th May. Elon tweeted that Tesla has put a pause on accepting bitcoin payment by considering the environmental causes that arise due to heavy consumption of energy. If you want to learn more about the crypto world, you must use the 1kdailyprofit.app. This impacted bitcoin’s market heavily, and its value dropped 15%, which shocked bitcoin investors, and they started to doubt the solidarity of the Bitcoin market.

Many people even tweeted in response to this tweet of Elon Musk and said that it might be possible that Tesla will sell its bitcoin holdings in the coming weeks, or they may have already done it. Even this tweet affected Bitcoin’s price as investors got scared and started to sell their bitcoin holdings. Again on 17th May, Must tweeted and clarified investors’ confusion that Tesla hasn’t sold any crypto holdings and clarified the speculation.

Did the price of cryptocurrencies drop?

Well, you might get shocked to know that on 19th May, the crypto market suffered a crash that is definitely the worst crash that took place in over a year. The crash made leading cryptocurrencies crash around 30% in less than 24 hours after bitcoin and Ethereum bulls made their value break previous all-time high records. But what’s the reason behind this crash? On 19th May, a statement was posted on the website of the Banking Association of China, which states that all financial institutions should refrain from offering digital currency services because of their highly volatile market.

In this group statement made by industry, not any single cryptocurrency was targeted, and it made all cryptocurrencies fall. Bitcoin’s value dropped 12%, and even Ethereum and Dogecoin lost their values. In 2020-end, bitcoin’s price was traded below $30,000, but in less than a time span of 6 months, bitcoin’s value rises to $65,000.

What role does Elon Musk play in Bitcoin Market?

Elon Musk is an essential part of the crypto market as being the CEO of a car company named Tesla; the company has made an investment in bitcoin of around $1.5 billion. Tesla started accepting bitcoin payments, and Musk was an active contributor to fluctuations that occur in the bitcoin market. His actions were described through his tweets which were responsible for the ups and downs of bitcoin’s price. Not only in Bitcoin, but Musk has also promoted Dogecoin, another big-to-be cryptocurrency due to which its value increased.

Musk reversed the entire situation in only a short time by making a statement that Tesla will not accept bitcoin payment that is discussed in the above paragraphs. A single announcement by Elon Musk shattered bitcoin’s market, and its value falls to a great extent. The reason that Elon Musk gave for not accepting bitcoin payments was the high energy consumption used in mining Bitcoin. At the same point of time, a considerable number of bitcoin fans pushed Musk by saving mining gold is doing more damage to the environment in comparison to bitcoin. A wide number of investors have also expressed their frustrating against the manipulation done by Elon Musk in the crypto market.

Still, beyond Tesla, multiple other big companies have also invested in bitcoin and are accepting it. But still, due to fear of its volatile market and price, it is less popular as compared to credit cards and cash payments. There was a significant fall that investors faced, and it is expected that its price will recover slowly by having a look at bitcoin’s price history. On 21st May, Elon tweeted that bitcoin’s price gets down to the lowest, whereas Dogecoin leaps because of favorable tweets made by Elon Musk on Dogecoin.