Bitcoin price dropped to three-month low around $43,000
May 17, 2021, 12:19AM EDT
1 min read
UPDATE: Elon Musk said in a follow-up tweet that “to clarify speculation, Tesla has not sold any Bitcoin.” BTC bounced back by nearly $2,000 after Musk’s tweet around 6:00 UTC time on Monday.
The price of bitcoin fell significantly over the weekend and has reached a three-month low below $43,000, early Monday morning UTC time. The price of the world's largest cryptocurrency by market capitalization plunged by over 10% in 24 hours.
Its price has been falling for nearly a week now, particularly since the moment when Tesla CEO Elon Musk said on Twitter that Tesla had suspended accepting bitcoin as a payment method.
Bitcoin is changing hands around $43,300 as of press time after reaching as low as $42,141 on Coinbase Pro. Here, the price is down more than 30% from its all-time high of around $64,000. Data from CoinGecko shows it is currently at the lowest point since early February.
The price started to fall with more velocity when Musk hinted on Twitter that Tesla may sell the remaining portion of its bitcoin holdings — despite stating last week that the company would keep hold of it.
Musk's latest Twitter response came after an increasing level of criticism by 'Crypto Twitter', especially by some bitcoiners, over his reversed attitude towards bitcoin. This included Musk's concern over bitcoin mining's energy issue, which led to Tesla suspending bitcoin as a means of payment. Musk's response was that such "obnoxious threads" make him want to get solely behind dogecoin — adding that, since he founded PayPal, he may "know [more] than you realize about how money works."
Meanwhile, the broader crypto market is also seeing a sea of red. The top 10 crypto assets by market cap have all experienced a daily decline of over 10%.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.