Bitcoin fell to its lowest level in three months, after investors sold their holdings of the cryptocurrency after Tesla’s Elon Musk hinted that the carmaker company would sell some of its holdings.
Musk had previously criticized the Bitcoin for being environmentally unsustainable, while supporting Dogecoin.
Musk was supportive of the cryptocurrency markets with his enthusiasm for this class of assets. However, recently, he caused trading turmoil after it appeared as if he had withdrawn his support from Bitcoin in favor of Dogecoin, which started as a joke.
Bitcoin lost more than nine percent of its value today to reach as much as $42,185. This is its lowest level since February 8. Ethereum, on the other hand, which is linked to the Ethereum blockchain, rose to as much as $3,123.94.
Dogecoin has fell nearly seven percent to $0.48. All three currencies are well below their recent highs.
On Wednesday, Musk said that Tesla would stop accepting Bitcoin as a payment method due to environmental concerns about the energy used to conduct its associated operations.
He hinted yesterday that Tesla might have sold its holdings of it.
Musk was one of the first major companies leaders to adopt cryptocurrencies. He spur the popularity of Dogecoin, a cryptocurrency that started as a joke in 2013.
In February 2021, Tesla said it had bought $1.5 billion worth of Bitcoin, and had planned to accept it as a currency to settle transactions, leading to a rise in its stock as well as its value.
Bitcoin remained not far from its lows today, after recent tweet of Elon Musk.
The largest cryptocurrency fell 0.4% to $49,128 Friday morning, after falling 9.5% on Thursday, according to Bloomberg data. Dogecoin has risen 10% in the past hour, according to CoinGeco.com.
Tesla shares rose 0.3% in post-close trade in New York, after closing 3.1% at $571.69. Tesla’s stock has declined by 19% since the beginning of 2021.