Last week, the premier cryptocurrency dropped sharply after Musk's announcement that Tesla would no longer accept payments for electric vehicles in bitcoins, citing the company's environmental concerns.
The cryptocurrency market immediately collapsed after Musk's 'green' tweet. Bitcoin tumbled by 17%, dragging other leading altcoins, as well as crypto-related shares, down.
The billionaire, who is considered to be a supporter of digital assets and does not cared about their impact on the environment, was harshly criticized in the cryptocurrency market.
Yesterday, the user under the nickname CryptoWhale wrote on Twitter that Musk would eventually give up bitcoin amid all the negative backlash he received in response to his announcement that Tesla had stopped accepting payments in the most popular cryptocurrency. He also added that he would not judge the billionaire for that.
The technoking posted only one word in reply. However, that was enough for investors to start doubting Musk's previous statements.
Last week, Musk wrote in a tweet that Tesla would not be selling any BTC and intended to use the virtual asset for transactions as soon as mining transitioned to more sustainable energy.
At the same time, Musk's tweet posted on Sunday triggered a 8.5% plunge in BTC to $44,395 as investors were massively selling off their crypto assets.
Early today, the bitcoin market is also bearish. At the moment of writing, it traded near the $42,638 mark.
Thus, the flagship cryptocurrency lost almost 22% last week. The price fell by 28% from its mid-April high of $64,829.
Bitcoin is a volatile digital asset. Its recent decrease has been the sharpest in more than three months. Besides, it has been the first major drop in the value of BTC since the price went up in January.
It seems that the cryptocurrency market's main influencer Elon Musk has started favouring Dogecoin. Last week, SpaceX announced that it would send a doge-funded satellite to orbit.
As a result, the meme-inspired coin increased in value. After SpaceX's announcement, Coinbase declared that it would offer the cryptocurrency on its exchange platform in 6-8 weeks.
At the same time, there are investors who are not fond of the game Musk plays in the cryptocurrency market. Last Friday, co-founder of Union Square Ventures Fred Wilson said that he lost his respect for Tesla and SpaceX's CEO. He still recognized his talents but to a lesser extent due to his tweets.
Elon Musk keeps juggling bitcoin as he pleases. For example, last week, the asset came out of favor with the technoking, and the coin immediately nosedived.
Experts suggest that the price of BTC will be in the downward trend this week and may plummet to $42K in the short term.
There are those who believe that the world's most popular coin may sag to $35K this week.
Clearly, such a sharp drop is unlikely to be triggered by one person, even if it is Elon Musk. Analysts assume that breaking news from any nation may deliver a blow to the value of the token as many countries are now waging war against cryptocurrencies. They also think that the army of opponents of virtual assets will increase in the future.
At the same time, it is too early to talk about a crypto winter. The current cryptocurrency market collapse is merely a new corrective wave. When it is completed, many popular altcoins will resume their upward movement, and a crypto summer will come.
The material has been provided by InstaForex Company - www.instaforex.com