Bitcoin Crashes After Elon Musk Destroys Crypto Market With Tweet

Tesla CEO Elon Musk announced on Twitter that the electric car company has suspended vehicle purchases using Bitcoin, citing environmental concerns.

"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," the statement in Musk's tweet wrote.

Previously in February 2021, Tesla announced that it has bought US$1.5 billion worth of Bitcoin and that it would start accepting payments in Bitcoin in exchange for its products, according to CNBC.

Musk's tweet on Thursday confirmed that the company will not be selling any Bitcoin, and intend to use it for transactions "when mining transitions to more sustainable energy".

He added that Tesla is looking at other cryptocurrencies that use less than one per cent of Bitcoin's energy and transaction.

"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," the statement wrote.

Within the first minutes of Musk's tweet, Bitcoin prices plunged by around five per cent reported CNBC.

Musk has been a very public fan of bitcoin and "meme" cryptocurrency dogecoin, often tweeting jokes about them on Twitter in the past year.

On May 11, the billionaire asked his followers in a tweet, whether they want "Tesla to accept Doge".

While volatile, Bitcoin has seen its value soar in the past year as investors saw the digital currency as a potential inflation hedge while central banks print money to relieve coronavirus-distressed economies.