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$280 billion wiped off crypto market as bitcoin falls below $40,000 for first time in 14 weeks

Mount Equity Group Tokyo, Japan > News > Tech > $280 billion wiped off crypto market as bitcoin falls below $40,000 for first time in 14 weeks

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BTC.BS=-USSIn this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin is on display in front of the Bitcoin course’s graph on February 09, 2021 in Paris, France.Chesnot | Getty Images

Bitcoin fell sharply on Tuesday continuing a major sell-off that began a week ago.

The digital currency fell over 13% to hit an intraday low of $38,585.86 at around 12:54 a.m. ET, according to CoinDesk data. It was the lowest level since Feb. 9, the last time it dropped below $40,000.

Negative news over the past week has dampened sentiment for bitcoin.

On May 12, Tesla CEO Elon Musk said the electric carmaker had suspended vehicle purchases using bitcoin, citing environmental concerns over the so-called computational “mining” process. This is where high-powered computers are used to solve complex mathematical puzzles to enable transactions using bitcoin.

Musk’s comments caused over $300 billion to be wiped off the entire cryptocurrency market that day.

The announcement to suspend bitcoin payment came just three months after Tesla revealed that it bought $1.5 billion worth of bitcoin, and would start accepting bitcoin in exchange for its products.

Early this week, the Tesla CEO clarified that the company has “not sold any Bitcoin.”

Then on Tuesday, three Chinese banking and