Cryptocurrencies rise after the drop caused by Tesla

bitcoin and cryptocurrencies
bitcoin and cryptocurrencies
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Bitcoin and cryptocurrencies

Despite being a great year for cryptocurrencies, this volatile sector is not spared moments when prices fall without brakes. This is what happened yesterday, after the statement from the electric car company Tesla, of reversing its decision to accept Bitcoin as a form of payment due to environmental concerns, given the amount of energy that Bitcoin consumes. This rejection by one of the companies that have bet the most on cryptocurrencies, launched the market into a small abyss.

Cryptocurrency prices are recovering apace after the big drops caused by Tesla’s decision not to accept Bitcoin as a payment method

Bitcoin was one of the most affected digital currencies, but the red numbers spread to practically all cryptocurrencies. But, despite the panic suffered by thousands of investors, the situation is not as serious as it seems, since prices are recovering apace.

The lowest point reached by Bitcoin after the news was $ 48,000. As of this writing, Bitcoin has once again exceeded the $ 50,000 barrier. The rest of cryptocurrencies have followed in their wake, and what yesterday was a festival of red numbers in all price tracking apps and websites, today has become a parade of reassuring green numbers.

Cryptocurrency Prices

In the image you can see how the main cryptocurrencies ordered by market capitalization have increased in value compared to the previous 24 hours. Some, like DOT or DOGE, have even reached double-digit flooding.

This pothole is a good time to remember that the cryptocurrency market is very volatile and that the price falls are normal, without implying a general collapse (although this is something that has happened on occasion). Bitcoin itself has reached prices lower than those caused by the Tesla news on at least two occasions over the past month, and thus far, it has always recovered a few days later.

It is also worth remembering that there are a multitude of external factors that greatly influence the price of cryptocurrencies, as we already explained in this video:

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