Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Bitcoin’s price crash means Tesla is back at square one

% of readers think this story is Fact. Add your two cents.

The recent plunge in the value of Bitcoin has effectively wiped out all of the gains made by Tesla Inc (NASDAQ:TSLA) since it first revealed its investment in the digital currency.

In late-morning trading in London on Wednesday, Bitcoin was trading at around US$39,703, down 12.1% over the last 24 hours and leaving it with a market cap just shy of US$743bn.

READ: Bitcoin plunges below US$40,000 as Chinese crackdown triggers fresh selloff

The recent tumble means the digital currency is trading at around the same level as it was on February 7, the day before Tesla’s billionaire boss Elon Musk revealed that the company had purchased around US$1.5bn worth of Bitcoin. Just before the announcements, Bitcoin was trading at around US$38,460.

Tesla’s move initially sparked a fresh surge of buying activity for Bitcoin and other cryptocurrencies, with the digital coin reaching an all-time high of around US$63,346 on April 16.

However, since then the price of Bitcoin has declined dramatically in several sharp drops, effectively wiping out any gains Tesla made from the bull market sparked by the announcement.

Ironically, many have attributed Bitcoin’s recent falls in value to Musk himself, with his decision to stop Tesla from accepting Bitcoin as a payment method due to environmental concerns, not long after approving the move, sent the crypto’s value tumbling.

Matters were made worse earlier this week when Musk issued a tweet that seemed to imply he was considering offloading the company’s current Bitcoin stash. While he went on to clarify that Tesla had not sold any Bitcoin, the price failed to recover completely.

However, Musk is not the only factor behind Bitcoin’s decline, with the large energy usage involved in its creation as well as potential regulatory risks around crypto usage causing both retail and institutional investors to reassess the potential of crypto.

The latter of these issues was thrown into stark relief on Wednesday when the People’s Bank of China issued a post on social media saying that financial and payment institutions should not accept crypto as a payment method or offer services related to digital currencies.

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Load more ...




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.