You'd think but Crypto doesn't operate by your school taught supply/demand principles. It's not a tangible asset thus belief/confidence in the viability of it's future drives the market. Actions like this and Tesla backing away from Bitcoin hurt that confidence. Environmentalists have Bitcoin in their sights. My guess is that's what turned Tesla away from bitcoin. Someone showed Musk that his customer base puts a huge value on the perceived environmental impact of electric cars. His base particular is wealthy and looking for ways to virtue signal. Some crypto currencies have no mining at all and have no limit on the volume in the market the creator can release.