Tesla CEO Elon Musk lost the crown as the richest man in the world after a sharp correction in bitcoin and a fall in the company’s shares, which some analysts believe are related.

Tesla shares (TSLA) fell 21% from the high of $ 890 on January 26, accelerating losses over the last two days to $ 698. Electric vehicle makers fell 13% on Tuesday, February 23, their worst day. available from the beginning of September.

Fox Business blamed the company’s bitcoin tie for the fall in equities this week, citing Wedbush analyst Dan Ives, who also suggested he sees the move as a long-term strategic move.

Investors began to tie Bitcoin and Tesla to the hips. While Tesla earned nearly $ 1 billion in Bitcoin on paper in one month, surpassing all EV revenue since 2020, Bitcoin sales over the past 48 hours and further volatility have pushed some investors out of this name in the near future.
Tesla shares traded at around $ 865 on February 8, when the $ 1.5 billion purchase of Bitcoin was announced. The bottom reached $ 681 on February 23, according to Yahoo Finance. However, reports of quality control problems in China may also have affected the price.

Tesla owns about 48,000 BTC, which means that the paper surplus was $ 1 billion when the asset reached a record high of just over $ 58,000 on February 21.

Despite the price drop this week, the company is still profitable in buying bitcoins as the asset was valued at over $ 39,000 when the purchase was made (and the purchase took place before that).

The fall in Telsa shares pushed Musk out of the top of the Bloomberg billion rankings, with a recent loss of $ 3.56 billion. According to Bloomberg, Jeff Bezos tops the list again, with a total of 187 billion dollars and Musk owns 180 billion dollars.

At the time of writing, bitcoin prices have been adjusted 17% to around $ 48,000, meaning a $ 10,000 drop in just three days. In terms of setbacks, markets have become accustomed to larger markets, such as the downturn in mid-January that resulted in a 30% correction for Bitcoin.