Crytpo-Related Stocks Like Coinbase, Tesla Take Hits From Bitcoin Freefall

Cryptocurrency investors had high hopes for bitcoin during its sharp rise over the past few months. On Wednesday morning, bitcoin saw a 30% plunge and a downturn for crypto-related stocks.

This significant drop comes just one day after China barred any crypto-related transactions from financial institutions and just a week after Elon Musk announced that his electric-car company, Tesla, would no longer accept bitcoin as payment. He attributed the move to environmental concerns related to crypto mining, CNBC noted.

Crypto-related companies like the new cryptocurrency exchange company Coinbase, as well as Tesla, saw significant drops in their stocks when the market opened Wednesday. At about 1 p.m. ET on Wednesday, Tesla (TSLA) had dropped 3.28%, while Coinbase (COIN) was down 5.45%.

There were also some issues with the Coinbase website when investors tried to log on this morning, further sending panic through the crypto-investor community. Many related companies saw a drop in their share price, as well.

In early trading Wednesday, Microstrategy, which has publicly purchased a large amount of crypto for its “corporate treasury,” had dropped 11%. Square (SQ) and PayPal (PYPL), which accept cryptocurrency transactions, both saw declines.

Shareholders took to social media to see what was going on with their stocks and share their frustrations with other investors.

Bitcoin hit an all-time high last month when it approached $65,000 during Coinbase’s big debut. The currency reached a low of $29,000 on Wednesday. It rebounded to $40,010.77 as of 1:01 p.m. ET.