Sell-Off Intensifies As Bitcoin Tumbles To $42,000

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The price of bitcoin has tumbled over 25% in the last seven days, hitting a low of $42,025 over the weekend, as investors took profits en masse.

Bitcoin, as well as peers such as Ethereum which have also slumped by similar amounts in the last week, has sold off after a staggering run year-to-date which had seen it double since the start of 2021.

Amid a wave of profit-taking last week, much of the reason for the sell-off is being placed on Elon Musk, the Tesla CEO, after a series of tweets about bitcoin, its energy usage, and the company’s position in the cryptoasset.

'We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk tweeted.

'Cryptocurrency is a good idea on many levels and we believe it has a promising future but this cannot come at great cost to the environment.

'Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin's energy/transaction.'

Nonetheless, Musk himself seemed to counter many rumors this morning after clarifying that Tesla had not sold any of its bitcoin recently.

Having bottomed at $42,000, bitcoin bounced back to trade at $44,300 this morning, with Ethereum at $3,376 having dropped to $3,095 at its low point.

Facebook to launch US stable coin 

The group behind Facebook’s Libra project plans to launch a US dollar stablecoin after scaling back its global ambitions amid resistance to its plans in Switzerland.

The Diem Association, which was formerly known as Facebook’s Libra project and is made up of 26 financial firms and non-profits, said it was relocating its main operations from Switzerland to the United States in a statement.

It has said it will now run a blockchain-based payment system that allows real-time transfer of Diem stablecoins, with plans to register as a money services business with the US Department of the Treasury’s Financial Crimes Enforcement Network.

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Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...

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