The Tesla chief previously was one of the biggest advocates of the digital currency, before questioning the environmental impact of Bitcoin earlier this year. In a recent interview, Mr Musk also warned Bitcoin and other cryptocurrencies are not “the second coming of the Messiah”.

While on stage at the California Code Conference, Mr Musk noted it is "possible for governments to slow down [Bitcoin and crypto's] advancement”.

He said the US Government should “do nothing” to regulate the market, allowing it to develop independently.

The Tesla CEO added: “Just let it fly.

"There's some value in crypto, but I don't think it's the second coming of the messiah.

“It will hopefully reduce the error and latency in legacy money systems."

Mr Musk also told Swisher “I don't tweet about crypto that much”.

The Tesla CEO has continued his support for Dogecoin however, recently suggesting Dogecoin fees need to fall before it can become a viable payment option.

He said on Twitter: “Super important for Doge fees to drop to make things like buying movie [tickets] viable.”

He has also proposed the memecoin work with the second-largest cryptocurrency after Bitcoin, Ethereum, to "beat Bitcoin hands down”.

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However, despite Mr Musk’s turn away from Bitcoin, on Friday the cryptocurrency had its biggest price jump since July.

Gregory Klumov, CEO of stablecoin platform STASIS, EXANTE's sister company, told Express.co.uk China's "harsh" decision on crypto won't affect the market in the long run.

He said: "Additional pressure on the market was exerted by the tightening of requirements for its participants by the Chinese regulator.

“All exchanges with Chinese roots announced the termination of the registration of customers from China.

"This triggered a sharp drop in tokens from Chinese exchanges such as Huobi and OKEx, as well as a sell-off on a wide range of digital assets, including blue chips such as Bitcoin and Ethereum.

"China's harsh position in the long term does not affect the cryptocurrency markets: Digital assets will continue to integrate into the financial system, and also become an increasingly popular sector for the allocation of assets among large investors and institutions - but outside the Middle Kingdom.”