Crypto market cap slumps below $2 trillion for the first time since late April.

The entire cryptocurrency market cap fell below $2 trillion for the first time since late April as bitcoin fell to a three-month low at $42,000.

It seems like Elon Musk is continuing to drive volatility in the crypto market as bitcoin fell by $7,000 in a day before it recovered $3,000. Most altcoins are also deep in the red, with ETH dipping below $3,500 and BNB beneath $500. In just a day, bitcoin nosedived more by $12,000 to a three-month low. Elon Musk’s comments on the leading cryptocurrency are mostly to be blamed for such a sudden downfall. 

 

Bitcoin plummeted to a three-month low.

At the time of writing, BTC is trading at just above $45,000. The high fluctuations continued as the billionaire clarified that Tesla hadn’t sold any of its BTC portions, and the cryptocurrency added $3,000 of value in a matter of minutes. These developments caused pain for traders as the total liquidations in the past 24 hours are $2.4 billion. Bitcoin’s market capitalization is close to dropping below $800 billion, while its market dominance sits at 40%. Altcoins also witnessed significant loss following bitcoin’s lead. 

 

Elon Musk’s tweets once again trigger bitcoin prices.

As reported earlier, in a Twitter spat with crypto enthusiasts, Elon Musk called bitcoin “highly centralized,” and most of it is controlled by big mining firms. He also replied to a tweet claiming Tesla sold off its bitcoin holding by saying “indeed.” However, he later clarified that Tesla had not sold any of the bitcoin holdings. Last week, Tesla announced that it is discontinuing its Bitcoin payments for its cars, causing bitcoin to fall. Most altcoin also witnessed significant loss as Ethereum saw a massive drop to $3,150 (on Bitstamp). Despite recovering some ground since then to $3,500, ETH is over $900 away from its most recent ATH registered earlier this month.  

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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