Bitcoin price falls below $30,000 as the Elon Musk effect on crypto fades

One of the biggest criticism that cryptocurrencies receive is that they are highly speculative assets. However, this logic stood undefeated even with the biggest crypto asset, Bitcoin, as it awaits a signal from the broader market or just one individual - Elon Musk.

Elon Musk could be moving out of crypto

Musk's mention of cryptocurrencies and related topics has gone down over the last couple of months. Except for a mention or two about Dogecoin, Elon Musk has kept his head low while Bitcoin maintained a bullish rally, rising above the $30,000 mark this week. But this lack of impact is more vivid when Tesla is considered.

The company recently released its Q1 earnings report, and Tesla has kept its BTC balance untouched. Despite renouncing the asset in 2021, Elon Musk has not sold a single BTC as the total holding of about 11,950 BTC is worth $350 million. The lack of selling is considered a bullish sign, but investors don't seem to care much at the moment.

This shows that the crypto market is not only decoupling from the TradFi market but also from the impact of influencers, pushing the pressure back on the supply and demand pattern.

Regardless, one of the biggest reasons for Elon Musk's departure from crypto has been the emergence of Artificial Intelligence (AI). This rapidly developing technology has been a big point of interest for Musk, who announced that his focus would no longer be on crypto but on AI.

What happens if Musk quits on Bitcoin?

There are two sides to the coin of the impact of Elon Musk's exit from crypto. While on the one hand, the chances of a negative impact will go down. On the other hand, panic will also surround crypto assets.

The negative impact is Elon Musk's ability to sway the value of digital assets as and when the Twitter owner deemed them to be. This would certainly come to an end. At the same time, if Musk completely pulls out of crypto, he could also sell off Tesla's BTC holdings. This would cause a sudden and drastic selling that could begin another bear market for BTC.

Put simply, Elon Musk still holds a lt of power in the crypto market with the ability to sway any asset's value. This uncertainty is also a matter of concern for many investors as any asset could fall victim to Musk's interest, who could increase or decrease any asset's value at any time without making much of an effort.