The announcement from Elon Musk and Tesla resulted in massive price slumps in the crypto market as bitcoin lost more than $12,000 of value in a day to a low beneath $46,000.

All altcoins followed suit, with Ethereum dipping to $3,600, and the market cap had lost roughly $500 billion at one point.

Bitcoin’s Massive Nosedive

Although bitcoin has failed to overcome $60,000 for weeks, the cryptocurrency was actually performing rather well lately. Just yesterday, BTC had reached a high of $58,000.

However, it all changed after Tesla and Elon Musk said they will cease receiving bitcoin payments for their products and services. Somewhat immediately, the asset price slumped by $3,000, but that was just the start of it.

In the following hours, the primary cryptocurrency kept falling to a low beneath $46,000. In other words, BTC nosedived by more than $12,000 in a day and plummeted to its lowest price level since late February.

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According to Bybt, the liquidations in the past 24 hours alone are worth almost $4 billion. Somewhat expectedly, over 90% of them came from long positions.

Despite recovering some ground and currently sitting above $51,000, bitcoin’s market cap dived well below the coveted $1 trillion line. Furthermore, BTC’s market dominance also keeps sliding and is down to 41%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Red Among The Alts

As it typically happens when there’s enhanced volatility with BTC, the altcoins also follow along. Ethereum, the top gainer among the larger-cap altcoins, had just painted yet another all-time high of nearly $4,400.

The adverse developments, though, took ETH by storm, and it plummeted to a low of $3,550 in a matter of hours. The second-largest crypto has bounced off since then and currently stands around $4,000.

Binance Coin was nearing its ATH at $685 yesterday but dumped by more than $100. BNB has also reclaimed some ground and currently sits above $620.

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Musk’s favorite meme coin was at $0.55, but it dropped to $0.35. Nevertheless, DOGE has also reacted somewhat positively and is close to $0.45 now.

On a 24-hour scale, Ripple (-8%), Cardano (-3.5%), Bitcoin Cash (-15%), Litecoin (-15%), Uniswap (-6%), Chainlink (-8%), and Stellar (-10%) are also deep in red from the larger-cap alts.

Interestingly, Polkadot has actually gained nearly 5% since yesterday and trades above $40.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

SHIBA INU has lost the most since yesterday after Vitalik Buterin sold a significant portion of his stash. The self-proclaimed Dogecoin-killer is down by 30% to below $0.00002.

Revain (-26%), EOS (-17%), Bitcoin Gold (-17%), Yearn.Finance (-17%), Telcoin (-15%), Ethereum Classic (-15%), Qtum (-14%), and Filecoin (-14%) are just a few more double-digit losers.

During the most substantial price dips, the crypto market cap had declined by roughly $500 billion in a day and was close to dropping below $2 trillion.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


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Crypto Market Cap Lost $500B in a Day as Bitcoin Slid to a 2-Month Low (Market Watch)

by Steven Willis
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