After the announcement by Tesla CEO Elon Musk that the electric vehicle maker would suspend car purchases using Bitcoin, several billion dollars were wiped off the entire cryptocurrency market.
Minutes after Elon Musk made the announcement, the value of the whole cryptocurrency market stood at around $2.43 trillion. Hours after, the market capitalization had dropped to around $2.06 trillion, wiping off around $365.85 billion.
However, there has been a bit of recovery afterward as the market capitalization is pegged at $2.32 trillion at the time of writing this report according to CoinGecko.
Musk cited environmental concerns on Thursday for halting Bitcoin payment and said Tesla is “concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
The Tesla CEO has been a big proponent of digital currencies including BTC and dogecoin, helping to drive their prices higher in recent months.
He said the company will not be selling any bitcoin and intends to use it for transactions “as soon as mining transitions to more sustainable energy.”
Amidst the dip, Bitcoin’s dominance over other altcoins have continued to dip and currently at 40% from 43% previously reported by BlocDesk.
BTC has garnered interest in the last year as companies such as Square and Tesla announced bitcoin purchases and large institutional investors entered the cryptocurrency space.
Major investment banks like Goldman Sachs and Morgan Stanley have also sought ways to allow their wealthy clients to get bitcoin exposure.
Tesla push altcoin into massive bloodshed
Beyond BTC, other cryptocurrencies (Ethereum, XRP, BNB) were also affected directly affected by the announcement that Tesla would stop accepting cryptocurrencies.
Very few altcoins were able to paint a green market for themselves after the announcement with the majority of them being smaller-cap altcoins.
Bitcoin cash (-16.5%) led the dip among the top ten cryptocurrencies followed by Litecoin (-16.0%), XRP (-10.8%), Dogecoin (-10.6%), Binance Coin (-10.5%), and Ethereum (-8.7%).
Polkadot is the only large-cap altcoin in green with a 2.4% surge.
Yearn finance (-17.8%), Qtum, (-16.5%), PancakeSwap (-15.6%), Bitcoin SV (-16.4%), Filecoin (-15.2%), EOS (-18.9%) also have been all red since Elon Musk’s juggrnut.
Aave (+16.6%), Polygon (+1.9%), Kusama (+22.1%), SNX (13.9%), Nano (+22%) are some altcoin that have snubbed Tesla’s announcement and has continued its bullish cycle.
Ultimately, the entire crypto market has dropped by 10% in the past 24 hours and now trade pegged at $2.32 trillion at the time of writing.