Bitcoin Plunge, Wipes $500 Billion From Value
- ByStartupStory | May 19, 2021
Bitcoin plunge almost 22% to $35,000, wiping out more than $500 billion in value from the coin’s peak market value. Following Tesla Inc.’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles. Ethereum, the second-biggest coin, sank more than 40%, while joke token Dogecoin lost 45%.
Bitcoin plunge is now down more than 50% from its record of almost $65,000 set in April. Fueling the volatility is Tesla CEO Elon Musk, whose social-media utterances have whipsawed the crypto community. At the time, Tesla’s acceptance was hailed as a watershed moment for the coin, with many in the crypto world seeing it as yet another step in its evolution. Bitcoin plunge after Musk sent investors into a tizzy following a mass of head-spinning tweets that started last week when he criticized Bitcoin’s energy use.
“This is going to be the first ‘welcome to crypto’ day for a lot of new entrants,” said Stephane Ouellette, chief executive and co-founder of FRNT Financial regarding the Bitcoin plunge. “The history of these assets has been littered with aggressive rallies and sickening selloffs.”
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