Cryptocurrency bloodbath: Global market cap drops by $177 billion as bitcoin and ethereum continue to nosedive

Tesla Founder Elon Musk’s views on Bitcoin have been moving prices for the crypto over the past one month.(Image Source: Reuters)

The cryptocurrency sector lost over $177 billion in market capitalisation on May 19 after bitcoin and ethereum saw their largest single-day price drop since March 2020, Reuters reported.

Prices of cryptocurrencies nosedived after China banned its financial and payment institutions from providing crypto services and Elon Musk indicated that Tesla may sell off all its Bitcoin as the businessman expressed concern over climate impact of the digital currency.

Bitcoin dropped to $30,066, the lowest since January when it slipped 22 percent to $33,502. The drop on May 19 was the largest single-day loss for Bitcoin since March 2020, the report noted.

Also Read | All you need to know about Bitcoin prices drop

Ethereum meanwhile fell to $1,850 - which was also its weakest since January when it slipped 28 percent to $2,439. The latest is also the largest single-day loss for Ethereum since March 2020.