Elon Musk, the founder of the electric car manufacturer Tesla, lost his title as the richest man in the world with the fall of the company’s shares. The sharp depreciation in Bitcoin was effective in the decline of Tesla’s shares.
Tesla shares, which make up most of Tesla’s founder Elon Musk’s fortune, fell more than 20 percent after peaking at $ 880 in January.
After the company decided to buy $ 1.5 billion in Bitcoin in a risky move, the value of the cryptocurrency had declined for two days after reaching an all-time peak on the weekend.
Tesla shares have declined a little in recent months, but in 2020, they increased from $ 90 to $ 700, making an extraordinary increase.
The 8 percent drop in Tesla stocks on Monday was the biggest drop since September. Shares also lost 2 percent on Tuesday.
Musk’s Twitter posts affect not only Bitcoin prices but also Tesla’s prices. Last year, after sharing a tweet that Tesla shares found high prices, the company’s market value had decreased by $ 14 billion.
According to the news of the BBC, the title of “richest person in the world” of Musk was again given to Jeff Bezos, the owner of Amazon.
While Bezos is at the top of the list with $ 186 billion, Musk is in the second place with $ 183 billion.
Wedbush Securities analyst Dan Ives says that although recent declines in the value of the highly volatile Bitcoin did not directly affect Tesla, it may have prompted some investors to divest their shares:
“Musk and Tesla aggressively own Bitcoin… Investors are starting to see Bitcoin and Tesla as interconnected. The wave of sales in Bitcoin pushed some investors to exit Tesla shares. “
Why is Bitcoin losing value?
After Tesla announced that he bought $ 1.5 billion in Bitcoin, the value of the cryptocurrency increased by around 50 percent.
Bitcoin, which exceeded $ 57,000 on Sunday, has lost around 20 percent in two days since then.
Although Bitcoin fell to $ 48,000 on Tuesday, it is still slightly above the value Tesla received.
It is thought that Musk may have a role in the rise of Bitcoin as well as its fall.
Elon Musk said in his Twitter post that the Bitcoin price appeared high.
Another factor that caused Bitcoin to depreciate was the warning that US Treasury Secretary Janet Yellen issued about Bitcoin on Monday.
Yellen said that the cryptocurrency is “too dysfunctional for shopping” and open to manipulation.
Mastercard and Bank of NY Mellon’s announcement that they will include Bitcoin in their operations also had an effect on the upward trend until the weekend.
Bitcoin held at $ 50k
Having seen a new peak of $ 58,330.57 with the support of increasing institutional purchases, Bitcoin, the largest volume unit of the crypto money markets, has kept above $ 50,000, which it recovered and rose after dropping to $ 45,000 with incoming sales.
Bitcoin, which fluctuated between $ 45,290.59 and $ 51,194.78 in the last 24 hours, fell 1.96 percent to $ 50,812.10, while the weekly gain of the unit was calculated as 3.26 percent. Bitcoin’s total market volume also declined by about $ 3 billion, to $ 951 billion.
With the effect of increasing corporate purchases, the total market volume, which exceeded the $ 1.0 trillion limit on January 7 and the $ 1.5 trillion limit on February 15, decreased by $ 2.0 billion in the last 24 hours to $ 1.54 trillion, but kept above $ 1.5 trillion.
In the crypto money markets, while the value of 54 units fell from the highest volume 100 units in the last 24 hours, seven units from the top 10 units were among those that fell.
Bitcoin comprised 61.7 percent of the total market volume in 34,545 markets where a total of 8,573 cryptocurrencies were traded. The 24-hour trading volume in all markets also increased by $ 36 billion to $ 269 billion.
Michael Saylor, the co-founder and CEO of MicroStrategy, a business intelligence, mobile software and cloud-based services company, which joined the cryptocurrency investor with 70,000 Bitcoin, claimed that Bitcoin will cover the entire market of gold in the coming period.
In his analysis titled “Ripple demanded a dismissal of the case,” Bittrt Research Director Helin Celik said, “Ripple requested the dismissal of the lawsuit, claiming that the SEC had previously negotiated with market actors and did not reveal to them that XRP was a security.”
“Ripple’s army of lawyers claimed that XRP has been operating for 8 years and is a decentralized structure. The SEC claimed that” XRP was offered and sold as an investment contract by the company. “
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.