As Much as $365 Billion Wiped Off Cryptocurrency Market After Tesla Stops Car Purchases With Bitcoin

Hundreds of billions of dollars were wiped off the entire cryptocurrency market after Tesla CEO Elon Musk tweeted that the electric vehicle maker would suspend car purchases using bitcoin.

At around 6 p.m. ET on Wednesday when Musk made the announcement, the value of the whole cryptocurrency market stood at around $2.43 trillion, according to data from Coinmarketcap.com. By 8:45 p.m., the market capitalization had dropped to around $2.06 trillion, wiping off around $365.85 billion.

The market has since pared some losses, and by around 3:00 p.m. on Thursday, the cryptocurrency market had seen around $290 billion wiped off its value since Musk’s tweet. Bitcoin was down 10.6% at around $48,500, according to Coin Metrics data, its first time below the $50,000 since Apr. 24.

Despite the recent pullback, bitcoin is still up over 400% in the last 12 months.

In February, Tesla announced in a regulatory filing that it had purchased $1.5 billion worth of bitcoin and planned to accept the cryptocurrency for payments.

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Source: CNBC