Insights

Bitcoin suffers largest correction since March 2020

The bitcoin (CRYPTO: BTC) hype train has taken a sharp turn away from destination moon back to earth. Here’s why bitcoin is tumbling.
The post Bitcoin suffers largest correction since March 2020 appeared first on The Motley Fool Australia. –

A Bitcoin symbol atop a spring, indicating the uncertain direction of cryptocurrency as a commodity

The Bitcoin (CRYPTO: BTC) hype train has taken a sharp turn away from destination moon and is hurtling back to earth.

The all-father cryptocurrency has experienced a ~30% selloff since its all-time high of US$64,899 on 14 April. This marks its largest correction since the March 2020 COVID-19 selloff where prices halved from US$8,000 to as low as US$3,800 within two days. 

Why is Bitcoin sliding?

Last week, Tesla Inc (NASDAQ: TSLA) CEO Elon Musk (aka the “Technoking of Tesla”) announced that the company would no longer offer Bitcoin as a payment option.

Musk’s tweet said at the time: 

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. 

He also tweeted the recent surge in energy usage over the past few months with regards to bitcoin electricity consumption.

On a slightly positive note, the tweet said that: 

Telsa will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. 

Within two hours of the tweet, bitcoin crashed from approximately ~US$54,500 to as low as ~US$48,500. 

Tesla exiting bitcoin speculation 

More recently, there has been speculation that Tesla may have planned or already sold its bitcoin holding. A Twitter user who goes by the handle @CryptoWhale said: 

Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings.

With the amount of hate @elonmusk is getting, I wouldn’t blame him…

To which Musk replied, “Indeed.”

A new cryptocurrency in town 

Musk appears to have turned his back on Bitcoin in favour of meme-inspired, dogecoin. Dogecoin has suffered a similar ~30% correction from 8 May highs of US$0.739 to US$0.506 at the time of writing.  

On 14 May, Musk tweeted: 

Working with Doge devs to improve system transaction efficiency. Potentially promising.

Which again, witnessed a significant surge in dogecoin prices. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Bitcoin suffers largest correction since March 2020 appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!