Bitcoin, ETH and Dogecoin prices plummeted after the selling action of Ethereum and Musk’s founders

ILLUSTRATION. Currency The prices of bitcoin, ETH and Dogecoin dropped by double digits making the market cap of the crypto market hovering US $ 300 billion. Bitcoin, ETH and Dogecoin prices plummeted after the selling action of Ethereum and Musk’s founders

Reporter: Avanty Nurdiana | Editor: Avanty Nurdiana

KONTAN.CO.ID – NEW YORK. The price of bitcoin and other crypto assets has plummeted. The price of bitcoin per May 13, 2021 until 20.30 WIB, for example, fell 10.97% at US $ 49,788 per BTC. As a result, bitcoin market capitalization collapsed below US $ 1 trillion to US $ 929 billion.

The condition of Ethereum, the crypto asset with the second largest market capitalization, also dropped 10.95% to US $ 3,784 per ETH. As a result, Ethereum’s market cap remains at US $ 435 billion.

Dogecoin’s price is the same. The price of DOGE fell 14.72% to U $ 0.4151 per DOGE. Thus, Dogecoin’s remaining market capitalization is US $ 53.21 billion.

The cryptocurrency market plummeted after billionaire Elon Musk and ethereum co-founder Vitalik Buterin made a surprise. The sharp drop was triggered by Buterin, the world’s youngest crypto billionaire, suddenly moving over US $ 2 billion worth of cryptocurrency.

Buterin donated US $ 1 billion in token memes, dogecoin to the India Covid Relief Fund and various other charities and moved US $ 1.3 billion worth of etherum tokens from its main public address to separate wallets.

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Meanwhile, billionaire Tesla Elon Musk stopped using bitcoin to buy Tesla cars. The move caused concern as ethereum founders thawed out holdings of cryptocurrency and knocked ethereum prices from recent highs of more than US $ 4,000 per ether token.

The cryptocurrency market has bubbled up to over US $ 2 trillion this year, with bitcoin being the largest cryptocurrency in the world with a market capitalization of around US $ 1 trillion. The growth of the crypto market has also been supported by ethereum’s soaring prices and the speculative frenzy followed by Dogecoin.

Elon Musk, Tesla chief executive and longtime Bitcoin supporter, announced his company would suspend customers’ use of bitcoin to buy its vehicles. “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but it is not great for the cost environment,” Musk said via Twitter.

Musk, who helped the price of bitcoin rise to over US $ 60,000 earlier this year cited environmental concerns around how those who secure the bitcoin network, known as miners, power their machines.

Also Read: This is the reason Elon Musk postponed the purchase of Tesla with bitcoin

In February 2021, Tesla revealed that it had bought US $ 1.5 billion in bitcoin and began accepting bitcoin as payment for car purchases in March. Thus, the price of bitcoin has jumped more than 20%.

“Elon Musk has the ability to pump or drop bitcoin prices on his own when it suits his interests,” said Alex Kuptsikevich, senior financial analyst at FxPro in emailed comments as quoted by Forbes. He also said it would not be surprising if Telsa later announced it was selling some bitcoins and causing the sell-off to become even more fierce.

“The huge reliance on the market view of the statement from one big investor creates a big gap for the crypto market and this means a risk that is worth noting. Bitcoin’s fall also coincided with a correction in the S&P 500 and this once again proves that the investor composition of the two markets is well correlated. Kuptsikevich said as quoted by Forbes.

Even so, Musk said, Telsa would continue to hold bitcoin on its balance sheet and would restart bitcoin transactions in the future. He added that companies that are reportedly hoping to enter the multi-billion dollar renewable credit market are looking for other cryptocurrencies that have less environmental impact.

“We’re also looking at other cryptocurrencies using

Also Read: Tesla suspended payments with Bitcoin, the price of Dogecoin and Ethereum fell too

“Tesla and bitcoin have always been a strange correlation, given the business credentials of the electric car maker, and the enormous amount of energy consumed by cryptocurrencies,” said Laith Khalaf, brokerage financial analyst AJ Bell, as quoted by Forbes.

“Environmental issues are a very sensitive subject at the moment, and Tesla’s move may serve as a warning to businesses and consumers using bitcoin,” Khalaf was quoted as saying by Forbes. He added that until now no one had considered its carbon footprint. Tesla may have made US $ 101 million from bitcoin sales in the first three months of this year, but now investors will legitimately ask if the money could have been better spent elsewhere.