Red alert! Hundreds of billions of dollars were wiped off the entire cryptocurrency market after Tesla CEO Elon Musk tweeted that the electric vehicle maker was suspending car purchases using Bitcoin.
At the time of the announcement, around 6 pm ET the value of the whole crypto market stood at around $2.43 trillion. By 8:45 pm, the market capitalization had dropped to around $2.06 trillion, wiping off around $365.85 billion.
The market has since pared some losses.
But not before Bitcoin dipped below the $50,000 mark for the first time since April 24. The largest cryptocurrency dropped as much as 15% in Asian trading, with reports of outages at exchanges as people rushed to sell.
BTC was seen changing hands at a low of $45,700 per unit, but quickly gained some of the losses after momentum picked up on the buying side. Despite the recent pullback, Bitcoin is still up over 400% in the last 12 months.
Most other coins are down between 5-30% during the last 24 hours.
At the time of the writing, Bitcoin is trading at $49,948, which shows that the world’s largest cryptocurrency is down 10%. But monthly data shows the digital asset is still up a touch over 5%, even with all the drama.
The second largest market is held by Ethereum, which is also down over 12% today, but up 104% during the last 30 days.
The market capitalization of these two coins makes up more than 60% of the entire crypto economy, with BTC holding a 42% dominance and ETH capturing 19.6%. Volatile price movements like these definitely do have a massive effect on the market.
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