Why did the cryptocurrencies crash today?
SEVERAL cryptocurrencies such as Bitcoin, Ether and Dogecoin tumbled the morning of February 23, by more than 10 percent.
fell below the $50,000 mark, while Dogecoin and Ether plummeted by more than 10 percent.
Why did the cryptocurrencies crash today?
In less than 24 hours, the price of Bitcoin declined from $46,605 to $44,964.
Dogecoin - the meme-inspired cryptocurrency that's become an online cult favorite - plummeted by more than 20 percent to roughly 4.4 cents.
Ether, the second most expensive crypto next to Bitcoin, sank nearly 10 percent to $1,455.
The steep decline sent the cryptocurrency market's total value down about 16 percent to nearly $1.4trillion just days after it soared to all-time records, according to .
The steady decline of the cryptocurrencies seemed to be jumped started by CEO - one of crypto's most prominent backers.
On February 22, Treasury Secretary Janet Yellen accelerated the decline by intimidating the market and calling Bitcoin "extremely inefficient" and "highly speculative".
What did Elon Musk and Treasury Secretary Janet Yellen say about cryptocurrency?
On Saturday, February 20, Musk may have unknowingly kickstarted the crypto plunge with a tweet declaring that the prices of Bitcoin and Ether "seem high".
On February 8, , which sent the value of the crypto soaring.
On Monday, February 22, Tesla's shares slid by 8.6 percent, wiping $15.2billion from Musk's net worth - which resulted in him losing his post as the world's richest person - reported.
The crypto market was also spooked by skeptical comments from Treasury Secretary Yellen, who called bitcoin “extremely inefficient” and “highly speculative”.
“It is a highly speculative asset and you know I think people should beware it can be extremely volatile and I do worry about potential losses that investors could suffer,” Yellen reportedly said at a conference on February 22.
Which celebrities and companies have invested in Bitcoin?
In recent months, Crypto prices have surged as a growing number of institutional investors and major companies such as .
Jack Dorsey
Twitter and Square Inc founder, Jack Dorsey, is a Bitcoin enthusiast and said he believes the internet will have its own currency in the future.
Square said in October 2020, that it had bought around 4,700 Bitcoins for $50million.
In February, the Twitter CEO shared a photograph of his computer running Bitcoin node software.
Jay-Z
Brooklyn rapper Jay-Z has launched a Bitcoin development fund with CEO Dorsey.
and Dorsey said the program will focus on the cryptocurrency's adoption in and .
The duo will invest 500 Bitcoins, which is currently worth around $24million.
READ MORE SUN STORIES
PayPal
The payment giant PayPal caused a Bitcoin surge in October 2020, when the company said customers could buy, sell and hold the cryptocurrency - as well as other virtual coins.
On February 15, PayPal announced that it's cryptocurrency services will soon be available in the United Kingdom.