Tesla CEO Elon Musk tweeted on Saturday, US time that in a battle between fiat and cryptocurrencies, his support is with crypto.
"The true battle is between fiat & crypto. On balance, I support the latter," he said on Twitter in reply to a user who asked him what his thoughts were about people who were angry at him because of crypto.
Musk has previously compared bitcoin to fiat money and often tweets about cryptocurrencies that have sent values for bitcoin and the meme digital currency dogecoin up and down.
In February, bitcoin shot higher after Tesla revealed it had bought US$1.5 billion of the cryptocurrency and would soon accept it as a form of payment for cars.
However, bitcoin slumped after the billionaire announced in May that Tesla would no longer accept bitcoin for car purchases, citing long-brewing environmental concerns for a swift reversal in the company's position on the cryptocurrency.
Earlier this month, he also called the cryptocurrency a "hustle" during his guest-host spot on the Saturday Night Live comedy sketch TV show, leading prices to tumble. read more
Two days ago, Musk assured that he has not sold any of his dogecoin holdings and will not sell any.
Meanwhile bitcoin fell 13 percent on Sunday, US time after the world's biggest and best-known cryptocurrency suffered another sell-off that left it down nearly 50 percent from the year's high.
Bitcoin fell to US$32,601 at 5am NZT, losing US$4,899.54 from its previous close. It hit a high for the year of US$64,895.22 on April 14.
Ether, the coin linked to the ethereum blockchain network, dropped 17 percent to US$1,905 on Sunday, US time, losing US$391.31 from its previous close.
Bitcoin markets operate 24/7, setting the stage for price swings at unpredictable hours.
"Many point to bitcoin's volatility as untenable," wrote RBC Capital Markets' Amy Wu Silverman in a research note. "Indeed, Bitcoin makes severe and dizzying swings."
Bitcoin had been under pressure after a series of tweets Musk, chiefly his reversal on Tesla accepting bitcoin as payment.
In addition, last week China cracked down on mining and trading of the largest cryptocurrency as part of ongoing efforts to prevent speculative and financial risks.
China's Financial Stability and Development Committee, chaired by Vice Premier Liu He, singled out bitcoin as the asset it needs to regulate more.
The statement, which came days after three Chinese industry bodies tightened a ban on banks and payment companies providing crypto-related services, was a sharp escalation of the country's push to stamp out speculation and fraud in virtual currencies.
China's latest campaign against crypto came after the US Treasury Department called for new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service, and the Federal Reserve flagged the risks cryptocurrencies posed to financial stability.