Bitcoin Recoups Some Losses from Musks Tesla UTurn

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Bitcoin regained some of the losses sustained after Elon Musk said that Tesla would stop accepting the digital tokens as payment for its cars, and was trading at nearly 50,000 on Thursday.

The price of the worlds largest cryptocurrency dropped 17 from around 54,819 to 45,700, its lowest since March 1, in just under two hours following Musks tweet on Wednesday.

Bitcoin later recovered about half of that drop and was trading at around 49,265 at 1119 GMT, while Ether, the secondlargest cryptocurrency, which had dropped 14 to a low of 3,550, rose above 4,000 before dipping back to around 3,700.

An announcement by Tesla on Feb. 8 that it had bought 1.5 billion of bitcoin and that it would accept it as payment for its electric vehicles has been one factor behind the digital tokens surging price this year.

But Tesla Chief Executive Musk has faced pressure about the environmental impact of bitcoin since the announcement.

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, Musk tweeted.

Musks comments roiled markets even though he said Tesla would not sell any bitcoin and would resume accepting it as soon as mining for it transitioned to more sustainable energy.

The digital currency is still trading about 30 higher than it was before Teslas announcement.

Jeffrey Wang, Vancouverbased head of Americas at Amber Group, a cryptocurrency service provider, said broader…

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