$ 365 billion cleared cryptocurrency market after Tesla halted bitcoin car purchases

Despite the recent pullback, bitcoin has risen more than 400 percent in the last 12 months.

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source: https://ibb.co/68KWF51

Hundreds of billions of dollars have been wiped out of the entire cryptocurrency market after Tesla manager Elon Musk wrote on twitter that the electric car manufacturer would stop buying cars using bitcoin.

At about 6pm ET on Wednesday when Musk made the announcement, the total market value of cryptocurrency stands at about $ 2.43 trillion, according to data from Coinmarketcap.com. At 8:45 pm, market revenue dropped to about $ 2.06 trillion, erasing about $ 365.85 billion.

The market has since lost another, and at 6.30am the cryptocurrency market saw about $ 235 billion erase its value from Musk's tweet. Bitcoin was about 12 percent lower at about $ 49,624, according to CoinDesk data, placing below the $ 50,000 mark for the first time since March 24.

Despite the recent pullback, bitcoin has risen more than 400 percent in the last 12 months.

In February, Tesla announced in a regulatory filing that it had purchased $ 1.5 billion and planned to accept a pay cut.

Musk cited environmental concerns on Thursday and said Tesla was "concerned about the increasing use of Bitcoin's mineral oil and transactions, especially coal, which are the main source of fuel."

Bitcoin is not issued by a single business like a central bank. Instead, it is maintained by a network of so-called "miners." These miners use purpose-built computers that require a lot of energy to solve difficult mathematical puzzles in order for bitcoin transactions to pass. The power consumption of Bitcoin is greater than in other countries.

Other ethers for cryptocurrensets and XRP were also very low.

Musk has been a major supporter of digital currencies including bitcoin and dogecoin, which helps drive their prices higher in recent months.

A Tesla chief executive said the company would not sell any bitcoin and intended to use it for trading "as soon as the mining revolution takes a more sustainable power."

Bitcoin gained interest last year as companies like Square and Tesla announced the purchase of bitcoin and large institutional investors entered the cryptocurrency space. Major investment banks such as Goldman Sachs and Morgan Stanley have also sought ways to allow their wealthy clients to gain access to bitcoin.