Bitcoin fell as much as 17% after Elon Musk tweeted on Thursday morning that Tesla motors had stopped accepting bitcoin for vehicle purchases due to climate concerns.
Taking to Twitter, CEO of Tesla motors and SpaceX, Musk wrote, “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
In just under two hours after the tweet, the price of the world’s largest cryptocurrency fell from around $54,819 to $45,700, its lowest since March 1.
Earlier this year, Tesla announced that it had purchased $1.5 billion in bitcoin and would accept it as payment for its cars. This was one of the factors driving the cryptocurrency’s price increase this year.
Musk went on to say that Tesla would not sell any bitcoin and would resume accepting bitcoin once mining moved to more sustainable energy sources.