Bitcoin (BTC) prices have experienced a dramatic decline, dropping over 50% from their peak of $124,000 in October 2025. As of Thursday, the cryptocurrency tested levels around $60,000, prompting a significant sell-off that erased an estimated $2 trillion from the broader cryptocurrency market. Investor panic surged as many speculated about the future of Bitcoin, particularly following comments from renowned investor Michael Burry, who expressed doubts about the asset’s recovery.
This steep decline has triggered a wave of selling across the entire crypto ecosystem, leading to substantial value destruction. Analysts attribute the downturn to several factors, including reduced inflows, poor liquidity, and waning macroeconomic appeal. As Bitcoin’s price continued to fall, other major cryptocurrencies have also felt the impact.
Burry has indicated that if Bitcoin continues its downward trajectory, it could create significant challenges for Strategy, the largest corporate holder of Bitcoin, led by CEO Phong Le. He noted that a further decline in Bitcoin could push the company into the red. Le reassured investors during a recent Q4 conference, stating that the company’s balance sheet remains resilient. He explained that Bitcoin prices would need to plummet to $8,000 and remain there for five to six years to pose a real threat to servicing its convertible debt.
In his analysis, Le stated, “In the extreme downside, if we were to have a 90% decline in Bitcoin price, and the price was $8,000, that is the point at which our Bitcoin reserve equals our net debt.” He added that in such a scenario, the company might have to consider restructuring or issuing additional equity or debt.
As Bitcoin prices continue to decline, miners are responding by unplugging their rigs. The combination of falling prices and rising power costs has made mining less viable. A key metric for Bitcoin mining revenue, the hash price index, has dropped to a record low of $0.03 per terahash, according to data from Luxor Technology. For context, this index was valued at $3.50 in 2017, marking a historic decrease that Harry Sudock, chief business officer at CleanSpar, described as the largest drop since the China ban.
Despite the grim outlook, a surprising perspective emerged from JPMorgan, which stated that Bitcoin’s relative attractiveness compared to gold has improved following recent rallies in the gold market. The bank noted that shifting volatility dynamics and a widening performance gap are making Bitcoin more appealing for long-term investors. Although Bitcoin has struggled throughout 2026, JPMorgan pointed out that liquidation activities in the cryptocurrency markets remain modest, with selling pressure being relatively contained compared to previous downturns.
As the cryptocurrency landscape continues to evolve, investors are urged to conduct their own analyses and seek professional advice before making any investment decisions. The unpredictable nature of the market highlights the risks associated with digital asset investments, where past performance does not guarantee future results.
