Hundreds of billions of dollars were wiped off the whole cryptocurrency market after Tesla CEO Elon Musk tweeted that the electric cars maker would stopped car purchases using bitcoin. At around 6 p.m. ET on Wednesday when Musk twitted about this 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.
Since the market has suffered some losses, and by around 6.30 a.m. the cryptocurrency market had seen around $235 billion wiped off its value since Musk tweeted. Bitcoin was dropped down around 12% at around $49,624, according to CoinDesk data, dipping below the $50,000 mark for the first time since Apr. 24. Despite the recent collapse, bitcoin is still up over 400% in the last 12 months.
In February, Tesla make public in a regulatory filing that it had bought $1.5 billion worth of bitcoin and planned to accept the cryptocurrency for payments.
Musk cited environmental worry on Thursday and mention 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.”
Bitcoin is not issued by a single organization like a central bank. Instead, it is held by a network of so-called “miners.” These miners use purpose-built computers that need a lot of energy to solve complex mathematical puzzles in order for bitcoin transactions to go through. Bitcoin’s energy utilization is larger than some individual countries.
Other cryptocurrencies Ether and XRP got also decreased. Musk has been a big proponent of digital currencies including bitcoin and dogecoin, helping to drive their prices higher in recent months. The Tesla CEO said the company will be using Bitcoin for transactions “as soon as mining transitions to more sustainable energy.”