Bitcoin Stocks Plummeting
NEW YORK STOCK EXCHANGE— On April 17, 2021, people involved with the Bitcoin stock market were sent to a frenzy when the market experienced an immense drop, as the Treasury Department was honing in on cryptocurrency as an outlet for money laundering, and a $16 billion change of ownership of Dogecoin occurred via RobinHood.
The “inevitable” decline, beginning at 7:00pm on Saturday, April 17, was Bitcoin’s largest monetary drop in history—yet it was not the highest percentage drop. In the month of April, the highest recorded price per Bitcoin was over $64,000, and in a short nine days, that price had dropped to under $48,000 by April 25th. The $16,000 drop in price per Bitcoin brought the entire market to a panic and many people sold their shares in fear of an even further decline.
On May 10, 2021, the price per Bitcoin continued to fluctuate by the second, yet the market was steadily recovering. From mid-April to early May, the decay had leveled to only about a 4.5% decrease, and the prices for the past week have only declined .60%.
However, on May 12, Tesla Co-founder and CEO, Elon Musk announced that Tesla will no longer accept Bicoin as a viable form of currency to pay for any Tesla products. At the time of the announcement, Bitcoin was around $56,000, then it took a steep decline of nearly 25% and is hovering around $43,000 as of May 17, 2021.
What does this mean for the future of Bitcoin? Like any cryptocurrency, the market is fast-paced and has the potential to change significantly every day. However, Tesla pulling out of Bitcoin is a major change that the market may not be able to sustain. While some say this crash was to be expected, others say that an even larger price per Bitcoin can be expected in the future.