Bitcoin plunged to a three-month low of $42,000, bringing the total cryptocurrency market cap below $2 trillion for the first time since late April.
Elon Musk seems to be causing further uncertainty in the cryptocurrency industry when bitcoin dropped $7,000 in a single day before recovering $3,000. The majority of altcoins are also in the red, with ETH trading below $3,500 and BNB trading below $500. Bitcoin has dropped another $12,000 in a single day to a three-month low. Elon Musk’s remarks on the leading cryptocurrency are mostly to blame for the steep drop.
Bitcoin’s price has dropped to a three-month low.
BTC is currently trading at just over $45,000 at the time of publication. The high volatility persisted after the billionaire explained that Tesla had not sold all of its BTC holdings, and the cryptocurrency gained $3,000 in value in minutes. Traders have been hurt by these trends, with $2.4 billion in liquidations in the last 24 hours. Bitcoin’s market capitalization is on the verge of falling below $800 billion, and its market share is hovering around 40%. Following bitcoin‘s lead, altcoins suffered significant losses as well.
Elon Musk’s tweets also triggered bitcoin rates yet again.
As previously noted, Elon Musk called bitcoin “extremely concentrated” in a Twitter spat with crypto enthusiasts, and large mining companies own the majority of it. He also said “indeed” in response to a tweet alleging Tesla had sold its bitcoin holdings. Tesla, on the other hand, later explained that none of its bitcoin shares had been sold. Tesla revealed last week that it would no longer accept Bitcoin payments for its drivers, prompting bitcoin to plummet. Most altcoins have suffered significant losses, with Ethereum plummeting to $3,150. (on Bitstamp). After gaining some ground to $3,500 since then, ETH is still over $900 below its most recent all-time high, set earlier this month.