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Bitcoin has started the day in a negative mood. At press time, the largest cryptocurrency by market cap is trading at $50,702.71 (-11.23%), according to CoinMarketCap.

Chart of the USD/BTC trading pair from EXANTE

For its part, Ether has fallen to $3,955.73 (-8.13%), while Binance Coin has dropped by 7.54% and is now trading at $621.07.

FxPro's team of analysts say:

"Elon Musk has the power to drive the price of Bitcoin up or down depending on his interests. Today, Bitcoin is down 11% and is trading at around $51,000. Even though the cryptocurrency has fallen to $47,000 overnight, it has attracted buyer demand, which has driven it to current levels.

The drop in the crypto's price could be related to Musk's statements that Tesla will stop accepting Bitcoins as a method of payment for its cars because this does not comply with the company's environmental principles. Of course, most market participants have seen in this statement Musk's position on Bitcoin as an investor.

It is likely that in the near future it will become known the company has sold some of its BTC holdings, which could lead to an even more violent sell-off in the market.

It is also likely that Musk's statements are the first serious harbinger of a broad trend reversal. Previously, Musk has actively spoken about Dogecoin and has also become one of the main beneficiaries of the final stage of the Bitcoin rally. However, such a heavy dependence of the whole market's outlook on the statements of a major investor is an extremely big hole for the crypto market, which demonstrates its vulnerability. It is worth noting that Bitcoin's fall has coincided with the correction in the S&P 500, proving once again that the investor composition of both markets may be largely identical."

According to CoinMarketCap’s ranking, 8 currencies on the top 10 are in red.

As for the market cap of all currencies listed in CoinMarketCap, it stays at $2,306,375,582,053.

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