Dogecoin slumps 20% after Tesla’s bitcoin shock – while other tokens like Ethereum’s ether and litecoin also slide

Dogecoin slumps 20% after Tesla’s bitcoin shock – while other tokens like Ethereum’s ether and litecoin also slide

And other cryptocurrencies sank on Thursday after Elon Musk for cars. The meme-inspired digital asset tumbled 20% to trade around 40 cents. fell 14%, while Ripple's and Ethereum's lost 11% - having each dropped more than 20% from their peaks. as much as 15% on Thursday, prompting a knock-on effect for other digital currencies, as the entire crypto market value wiped off as much as at one point. The sell-off is being driven by a number of factors, according to Simon Peters, a crypto-asset analyst at investment platform eToro. "Valuations were at or near all-time highs earlier this month, so there will naturally be some profit-taking, while we are also seeing a general sell-off among risk assets - such as technology stocks - as economies start to unlock post the pandemic and investors fret over potential rate rises and higher inflation," he said. But he expects buyers to return to cryptocurrencies in the coming weeks to take advantage of lower prices. An overall drop in the crypto market saw "#cryptocurrencies" trending on Twitter with many users reacting to the sudden surprise that Musk delivered. Musk, who has regularly tweeted about dogecoin, he was concerned about "rapidly increasing use of fossil