May 19, 2021, will be etched on the sands of time as a black Wednesday for the entire crypto industry. Bitcoin fell below $40,000 after several months of consolidating at the $50k region. Meanwhile, the entire cryptocurrency market has lost more than $350 billion in value.
Data on CoinMarketCap suggests that Bitcoin fell to a 24-hour low of $30,681. However, as of press time, the flagship currency appears to be bouncing higher as is currently trading at around $38,900.
Bitcoin’s latest dip follows a week of successive drops, which was originally fuelled by Tesla’s announcement that it was no longer accepting the digital asset as payment for its cars. Wednesday’s dip is the lowest the digital asset has been since early February and represents a 40% drop from its all-time highs.
Amid the market crash, Tesla and its CEO Elon Musk are also filling the heat. Musk has been widely criticized for his role in the latest negative price actions.
With Bitcoin trading below $40,000, prices have fallen to the same levels at which Tesla invested $1.5 billion. Following the firm’s announcement of the $1.5 billion investment, Bitcoin surged to $43k. However, it is very possible at all its Bitcoin profits, which at one point was more than its entire history of making electric cars, has evaporated in the market crash. Bitcoin Treasuries, a monitoring resource, says otherwise. The site reports that Tesla’s BTC stash is worth approximately $1.73 billion, representing a growth of 1.2 times.