The cryptocurrency market’s massive crash worsened Sunday as a wave of crackdown measures in China continues to rattle investor sentiment, pushing losses to more than $1.3 trillion since a market peak on May 12, the day billionaire Elon Musk announced on Twitter that Tesla would no longer invest in or sell bitcoin due to its hefty environmental cost.
Bitcoin’s upheaval came on the back of Elon Musk’s tweets. It soared when Musk said that Tesla will accept Bitcoin in payments for its cars. It nosedived after Musk said that the company will no longer accept Bitcoin as payments. Dogecoin soared after the Tesla chief backed it and said that he is working with Dogecoin developers to “improve system transaction efficiency.” But Musk’s appearance on Saturday Night Live, where he called Dogecoin a ‘hustle’ and a series of tweets criticising crypto mining saw the meme coin tumble.
Additionally, China has banned crypto transactions. The country has asked financial institutions and payment companies to not provide services related to cryptocurrency transactions and warned investors against speculative crypto trading.