Why is the price of Ethereum dropping?
ETHEREUM’S PRICE HAS BEEN DROPING IN RECENT DAYS, ALONG WITH THE PRICE OF ALL OTHER CRYPTOCURRENCIES. WHY IS ETHEREUM’S PRICE DROPING?
According to CoinDesk, Ethereum was priced at $1,926.72 (£1,384.76) on Monday evening (June 21), a decline of -9.69 percent in 24 hours. The world of cryptocurrencies has had a tumultuous few days, with bitcoin’s price continuing to plummet on Monday morning following a market-wide sell-off over the weekend. Last week, Ethereum and other cryptocurrencies suffered losses, with Ethereum’s price plunging sharply on Thursday.
Ethereum was trading at $2,388.08 (£1,712.25) on Thursday afternoon (June 17), down -2.61 percent in 24 hours, according to CoinDesk.
Ethereum had dropped from $2,425.81 the hour before to $2,390.84 as of 1.51pm (BST) on Thursday.
The dip in Ethereum last week could be linked to a tweet by Tesla CEO Elon Musk on Thursday afternoon concerning bitcoin, a competitor cryptocurrency.
“Kraken CEO @jespow:”Bitcoin is ‘greener’ than critics say,” Elon Musk tweeted in response to a tweet from Bitcoin Magazine about an interview with Kraken CEO Jesse Powell, which stated: “Kraken CEO @jespow:”Bitcoin is ‘greener’ than critics claim. I believe Elon still needs to study.”
“Based on what data?” said Mr Musk in response to the tweet.
Mr Musk’s remark has heightened the focus on bitcoin’s environmental credentials, which have been criticized in recent months.
Mr Musk announced last month that Tesla will no longer accept bitcoin as payment for its automobiles in a tweet.
“We are concerned about the fast expanding use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Mr Musk stated on Twitter.
“Cryptocurrency is a terrific idea,” he added. However, development must not come at the expense of the environment.”
As a result of Mr Musk’s comments, Bitcoin prices have fallen across the board.
However, his tweet earlier this month, in which Musk implied that Tesla would accept bitcoin again in the future, led prices to increase.
“Tesla will resume permitting Bitcoin transactions when there is confirmation of reasonable (50 percent ) clean energy usage by miners with a positive future trend,” he tweeted.
In recent months, the Tesla CEO has had a significant impact on the bitcoin market.
His tweets regarding the popular meme-based cryptocurrency Dogecoin led to the token’s rising popularity.
Mr Musk earlier tweeted about his company, SpaceX, putting a “literal Dogecoin on the.”Brinkwire Summary News.”