Market Wrap: Bitcoin Falls for Second Straight Day After Tesla Action; Ether Follows

It’s Elon Musk’s crypto world. A bearish tweet from the entrepreneur on bitcoin and Tesla reneging on using it as a payment method sent crypto markets dropping.

  • Bitcoin (BTC) trading around $48,769 as of 21:00 UTC (4 p.m. ET). Losing 10% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $47,720-$54,781 (CoinDesk 20)
  • Ether (ETH) trading around $3,651 as of 21:00 UTC (4 p.m. ET). Dropping 10% over the previous 24 hours.
  • Ether’s 24-hour range: $3,595-$4,243 (CoinDesk 20)

Bitcoin fails to find market bottom

Bitcoin’s hourly price chart on Bitstamp since May 10.
Source: TradingView

Bitcoin was down 10% Thursday as of press time and going as low as $47,720 around 01:00 UTC (9 p.m. ET). The world’s largest cryptocurrency by market capitalization was below the 10-hour moving average and the 50-day, a bearish signal for market technicians.

One fundamental reason for bitcoin’s drop: Tesla. Bitcoin’s price has been in a very defined range over the past two weeks but the electric car maker’s announcement Wednesday that it would stop accepting BTC because of environmental issues related to bitcoin mining led to immediate selling that spilled into the next day.

“What saddens me is the way the weak hands and recent buyers see Elon Musk as a prophet, powerhouse and decisive figure in bitcoin,” said Henrik Kugelberg, a bitcoin over-the-counter trader.