Dogecoin, Bitcoin, Ethereum and Cardano all dive after Elon Musk’s tweet – fr

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Dogecoin, Bitcoin, Ethereum and Cardano all dive after Elon Musk’s tweet – fr


The entire crypto market collapsed after just one tweet from Elon Musk.
The tweet announced that Tesla would no longer accept bitcoin as payment for its cars, reversing a recent move that helped push the price of bitcoin to new heights.

Mr Musk said the decision was made due to the large amount of energy used by bitcoin. He said he still thought cryptocurrency “is a good idea on many levels,” that Tesla would use bitcoin again if its energy got cleaner and it explored other digital currencies – but that for the moment Tesla would return to non-conventional payments.

It followed other warnings of “caution” from Mr. Musk. Ahead of his appearance on Saturday Night Live last week – which appeared to jack up the prices of a range of digital currencies, seemingly in the hope that Mr. Musk would boost them during the show – he advised people to watch out for their investments.

The announcement immediately led to the downfall of bitcoin. It has now fallen almost 12% in the past 24 hours, wiping out more than $ 100 billion of its value.

Equally notable, however, was how much the announcement seemed to affect other cryptocurrencies.

Ethereum, for example, had had a strong run that had dramatically increased its value. But it has also fallen by more than 12%.

That hasn’t entirely erased its recent gains – it’s still up 8% from last week – but has meant its price has been hit significantly.

Dogecoin has also fallen rapidly, possibly in part because Mr. Musk has so far been a cheerleader for the coin. It has fallen 20% in the last 24 hours and 34% in the last week – particularly dramatic after a gradual increase that saw it overtake Bitcoin’s growth by more than 100 times compared to 2021.

Its downfall occurred despite the fact that dogecoin uses relatively small amounts of energy compared to bitcoin, and was not specifically mentioned by Mr. Musk in his post.

The only major cryptocurrency to record gains during the day was cardano, which rose 8.6% over the past week. Those gains continued on Thursday, which saw it rise 2.6%.

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