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Bitcoin crash, Elon Musk, fear of inflation, economy suffers

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Bitcoin, Ethereum, and other cryptocurrencies had a significant drop on Wednesday: the ten most valuable cryptocurrencies by market capitalization fell by two digits, with one exception.

Bitcoin, on the other hand, has lost about 30% of its value after China announced a new crackdown on cryptocurrency and billionaire Elon Musk sent out contradictory statements about his company’s use of the currency.

Bitcoin’s price has dropped by more than 40% since its peak, and other popular assets have also dropped dramatically.

Bitcoin dropped to almost $30,000 in a single day on Wednesday morning, continuing a massive liquidation in cryptocurrency markets that began a week ago.

Bitcoin’s prices plummeted in the midst of a massive worldwide stock market sell-off.

The digital currency reached a low of $30.001,51 on Wednesday morning before recovering some of its losses.

Elon Musk’s role in the fall

The multi billionaire Tesla CEO shared a meme on Wednesday that appeared to indicate that Tesla will abandon its bitcoin in the midst of a major cryptocurrency crash.

This occurs after Tesla, a long-time supporter of Bitcoin, recently stated that he would no longer accept Bitcoin as payment for his vehicles, reversing his previous position.

Musk announced on May 12 that Tesla had suspended bitcoin vehicle purchases because of environmental concerns about the so-called “computer mining” process.

The announcement to cease bitcoin payments came only three months after Tesla said that it had purchased $1.500 million in bitcoins and will begin accepting bitcoins in exchange for its products.

The billionaire entrepreneur has also expressed his support for Dogecoin, a cryptocurrency that began as a rumor and has been mentioned by Tesla CEO Elon Musk, and has dropped 20 percent to less than 38 cents.

Musk’s influence has begun to be questioned due to the enormous impact that a single individual may have in the crypto space.

The rest of the economy also suffers

The currency markets, oil prices, and bitcoin prices all fell on Wednesday as a result of a slew of issues ranging from rising inflation to Chinese repression of cryptocurrency.

Prices for everything, from gasoline to groceries, are rising as the economy recovers from a year’s worth of malaise.

The Federal Reserve hopes that the increase in inflation is temporary and related to the economy’s recovery, but investors are nonetheless concerned and have been more cautious.

Sources: [1], [2], [3], [4], [5].

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