Bitcoin Price Slumps as Tesla Suspends Bitcoin Payment

Earlier today, the whole crypto market was thrown into confusion following the announcement by Elon Musk that Tesla will no longer accept Bitcoin payment. The Tesla CEO took to Twitter to drop the shocking news, citing environmental issues as the reason for the decision.

According to Musk, BTC mining validation mechanism “Proof-of-Stake” has the “worst emissions of any fuel,” which is concerning. This is because of the rising use of coal for mining activities.

Source: Elon Musk

However, he revealed that Tesla will continue to hold Bitcoin on its balance sheet “until miners shift to more eco-friendly energy.” Nevertheless, Tesla believes cryptocurrencies are promising but chooses to side with environmental sustainability.  

Yesterday, Bitcoin was already recovering from the Monday dip by trading to an intraday high of $57,939. Following the news, the Bitcoin market took a huge dive downward as the price plummeted by 15% in about three hours. Musk’s announcement took prices to a low of about $46,980 according to Coinmarketcap

Moreover, it appears that altcoins have shared in the huge hit, as red currently dominates the market. Ethereum has dropped by 10 percent in the last 24 hours, Binance coin by 9.5 percent, Dogecoin 19.34 percent, Bitcoin Cash by 15.7 percent and Litecoin by 16.49 percent.

Reactions to Tesla’s Suspension of Bitcoin Payment

Crypto Twitter is currently in chaos due to Tesla’s suspension of Bitcoin payment. Many users are accusing Elon Musk of a pump and dump scheme. Others criticized him for manipulating the market just as he did Dogecoin. Another user expects that the SEC to respond to Musk’s actions.

Musk revealed that Tesla will like to adopt other cryptocurrencies that are more energy-efficient than Bitcoin. Many crypto fans have been trying to figure out which coin it would be, with many suggesting XRP, ADA, ETH and others. However, whatever cryptocurrency it would be, it definitely won’t rely on POW.

Amid the current market plunge, many traders have started buying the dip. As of this writing, the leading crypto asset is trading around $50,000.

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