The world's most popular cryptocurrency has seen its price surge this year as more companies embrace it as a mainstream form of payment. But Bitcoin's price plunged by almost 10 percent to below $45,000 for the first time in nearly three months before edging upwards to just under $46,000. It had been trading as high as $50,000 on Friday.
Over the weekend, Mr Musk suggested the firm is considering selling or may have already sold some of its holdings in the cryptocurrency.
Bitcoin's price drop was triggered by a tweet sent to the Tesla boss, which said: "Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their Bitcoin holdings.
"With the amount of hate [Elon Musk] is getting, I wouldn’t blame him."
Mr Musk simply replied: "Indeed."Insurance Loans Mortgage Attorney Credit Lawyer
Bitcoin's price has plummeted after Elon Musk hinted Tesla may sell its cryptocurrency holdings (Image: GETTY)
Elon Musk Tweet sent Bitcoin's price plummeting to a three-month low (Image: GETTY)
He later followed up that Tweet, and wrote: "To clarify speculation, Tesla has not sold any Bitcoin."
The latest blow for Bitcoin comes a week after the Tesla chief executive said the company had stopped accepting Bitcoin as payment for its cars because of fears over its carbon emissions.
He announced the carmaker had stopped vehicle purchases with the cryptocurrency because of "rapidly increasing use of fossil fuels for Bitcoin mining".
The Tesla boss tweeted: "We are concerned about rapidly