In a matter of hours, Bitcoin will break through several psychological price levels that could give crypto evangelists and TradFi newcomers sleepless nights. At the time of writing, the token has rebounded around $65,000 after falling to $60,000 on Friday. That’s certainly far from zero, but it’s well below October’s peak of $126,000 and lower than the average purchase price of $70,000 to $80,000 paid by exchange-traded funds and entities like Michael Saylor Strategy, which reported a $12.4 billion net loss on Thursday.
This is mind-boggling, even for an asset with no intrinsic value known for epic drawdowns and Wild West volatility. Bitcoin’s roughly 20% drop in three days is reminiscent of the kind of decline seen in 2022 when the FTX exchange collapsed, even though many other assets, from precious metals to tech stocks, also look over-the-top today. A particularly severe type of crypto winter appears to be on the horizon, one that will test the ability of all but the most dedicated or duped HODLers to hang on for dear life.
