The cryptocurrency market has crashed around 10% all thanks to Elon Musk’s tweet saying “Indeed”. The Tesla CEO hold immense power over the cryptocurrency market since the whole market is purely speculative. Musk’s tweet was a response to a threat stating Tesla may dump its Bitcoin holdings because of BTC’s high energy consumption and the subsequent harm to the environment.
The hint towards Tesla dumping its BTC holdings has spiraled into a hard market crash. Bitcoin has fallen to nearly $45,000 with its market dominance crashing to 40%. The fall in BTC’s dominance is huge and has caused a further panic in the market. The dominance is currently at its lowest since the market crash of 2018 – hinting towards a similar cooling of the market.
Bitcoin is currently down by 35% from its all-time high established in April. Ethereum, the queen of the market, has suffered to. ETH is down by 24% from its all-time high established earlier in May. The rest of the market is following suit with cryptocurrencies showing nearly double-figure losses in the weekly timeframe.
Elon Musk has also been called a hypocrite for ditching Bitcoin because of its high energy consumption. Galaxy Digital, a cryptocurrency firm, has released a report titled “On Bitcoin’s Energy Consumption: A Quantitative Approach to a Subjective Question”. According to the estimates of the study, the energy consumption of Bitcoin stands at $113 TWh inclusive of miner demand, pool power, node power, and miner power consumption. The figure is two times less than the energy consumption of the banking sector as well as the gold industry.
Bitcoin has been bashed for not being environmentally friendly and with Elon Musk being the latest to join the ranks of those, the study has shed light over the important issue.