Concerns Over 'Black Thursday' Reenactment After Musk's Comment... Cryptocurrency on a Rollercoaster Ride (Comprehensive Report 2)

Tesla CEO Elon Musk "Bitcoin Payment Suspended"
Bitcoin Drops 13% Compared to Previous Day, Then Slightly Rebounds
Investors See It as a Buying Opportunity and Continue to Accumulate

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jaehee] On the 13th, the Bitcoin market experienced significant turbulence as concerns over inflation were compounded by Tesla CEO Elon Musk's sudden announcement to halt Bitcoin payments. The double blow seemed to recreate a 'Black Thursday' for the cryptocurrency market, but due to bargain buying in Asian markets, Bitcoin prices slightly rebounded, continuing a rollercoaster trend.

On the same day, CEO Musk announced on his Twitter, "Tesla will suspend vehicle purchases using Bitcoin," citing "a sharp increase in fossil fuel, especially coal, usage in Bitcoin mining."

He added, "There is no doubt about the promising future of cryptocurrencies, but it cannot come at the expense of the environment," and stated, "We are looking for other cryptocurrencies that consume less than 1% of the energy used in Bitcoin mining."

[Image source=Reuters Yonhap News]

CEO Musk also added that Tesla would not sell the Bitcoin it currently holds.

Following Musk's sudden announcement, Bitcoin prices plummeted. According to CoinMarketCap, which tracks global cryptocurrency markets, as of 10 a.m. Korean time on the 13th, Bitcoin was priced at $49,706.62, down 13.24% compared to 24 hours earlier.

However, in the afternoon, as cryptocurrency prices fell, investors saw it as a buying opportunity, leading to a slight rebound in prices. As of 3:30 p.m. that day, CoinMarketCap reported Bitcoin trading at $50,938.63, down 10.95% compared to 24 hours earlier.

Musk's single statement caused significant volatility in the cryptocurrency market, including Bitcoin and Dogecoin, sparking massive backlash from crypto investors worldwide. Musk had previously raised expectations by promoting cryptocurrencies multiple times on Twitter, but his sudden announcement triggered a sharp price drop, angering investors. On social media, tweets accusing Musk of "betraying" cryptocurrency investors have been the most prevalent.

Until now, CEO Musk has frequently made public remarks related to cryptocurrencies, greatly influencing their market prices. Earlier, Tesla purchased $1.5 billion (approximately 1.7 trillion KRW) worth of Bitcoin in February and announced that Bitcoin would be accepted as a payment method for its products, driving a rally in Bitcoin prices. Musk also stated plans to invest more in Bitcoin and other cryptocurrencies, referring to himself as the "Dogefather" (the father of Dogecoin). On the 8th, he appeared on NBC's flagship comedy program "Saturday Night Live (SNL)" and mentioned Dogecoin; around his appearance, Dogecoin's price showed significant volatility. On the 9th, Musk announced that his private space exploration company SpaceX plans to pay for the 'DOGE-1 lunar mission' using Dogecoin.

In response, U.S. authorities are moving to incorporate cryptocurrencies into the regulatory framework. SEC Chairman Gary Gensler said at a House Financial Services Committee hearing on the 6th, "The SEC is preparing guidelines related to cryptocurrencies, but Congress needs to step in to regulate." U.S. Treasury Secretary Janet Yellen has also publicly described cryptocurrencies as "highly speculative assets" and expressed concerns about potential losses for investors.

Meanwhile, Bitcoin's market capitalization on the day fell from $1.0501 trillion (approximately 1,185 trillion KRW) the previous day to $878.9 billion (approximately 992 trillion KRW), a drop of about 190 trillion KRW.

This content was produced with the assistance of AI translation services.