Bitcoin and other cryptocurrencies have had the hardest week of the year. Cryptocurrency investors lost $748 billion last week. Bitcoin fell from $48,696 to $34,224 within the time period. At the same time, Ethereum fell from $3730 to nearly $2000. Other cryptocurrencies also had a tough last week as most of them fell.
There were multiple factors of the fall major was Elon Musk’s tweet. He tweeted last week that Tesla was accepting Bitcoin as payments would stop accepting it as payments because of environmental concerns. It spurred a quick and major dip in the market price of most cryptocurrencies. The market also fell as China banned all exchanges and banks from doing any cryptocurrency transaction.
Elon Musk has had a very big sway on the cryptocurrency market for a few years. Dogecoin lost a major chunk of its value after Elon Musk’s SNL appearance. Elon had commented on the show replying to a fellow host’s comment that Dogecoin is a “hustle”. Dogecoin’s price took a nosedive after the comment. From a lifetime’s high value it lost over 25% of its value.
The digital assets investors however believe that the sway of these factors won’t last long. The currency will become truly decentralized in the coming few years and won’t be influenced by these factors and or people.