Bitcoin (BTC) prices have experienced a dramatic decline, falling over 50% from their peak of $124,000 in October 2025 to test the $60,000 level on Thursday. This downturn wiped approximately $2 trillion from the cryptocurrency markets, prompting widespread panic-selling among investors. Many in the sector are questioning the future viability of Bitcoin, a sentiment amplified by renowned investor Michael Burry, who expressed doubts about the asset’s potential for further declines.
The rapid fall in Bitcoin prices has triggered a significant sell-off throughout the entire cryptocurrency ecosystem, leading to considerable value erosion. Analysts attribute this slump to a combination of factors, including reduced inflows, poor liquidity, and waning macroeconomic appeal, impacting not only Bitcoin but also other major cryptocurrencies.
Burry highlighted concerns regarding Strategy, the largest corporate holder of Bitcoin, indicating that further double-digit declines in BTC could jeopardize the company’s balance sheet. During an investor conference, Phong Le, CEO of Strategy, reassured stakeholders that the company remains resilient. He stated that Bitcoin would need to fall to $8,000 and sustain that level for five to six years to create a real threat to their ability to service convertible debt. Le elaborated, “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.”
The repercussions of falling Bitcoin prices are evident in the mining sector, where many miners are shutting down their rigs due to diminished profitability and rising energy costs. A key metric for Bitcoin mining revenue, the hash price index, has plummeted to a record low of $0.03 per terahash, according to data from Luxor Technology. This figure starkly contrasts with the $3.50 recorded in 2017. Harry Sudock, Chief Business Officer at CleanSpar, remarked, “The decrease is historic, the largest since the China ban, due to both the sell-off and winter storms.”
In a surprising counter-narrative, JPMorgan provided an optimistic outlook on Bitcoin, suggesting that its appeal relative to gold has improved following gold’s recent rally and increased volatility. The bank explained that changing volatility dynamics and a widening performance gap are positioning Bitcoin as an attractive option for long-term investors. JPMorgan noted that despite Bitcoin’s struggles in 2026, liquidation activity in cryptocurrency markets has remained moderate, with selling pressure contained compared to previous downturns.
As the cryptocurrency landscape continues to evolve, the future of Bitcoin and its ecosystem remains uncertain. Investors are advised to conduct their own analysis or seek professional guidance, as investments are subject to market risks and past performance does not guarantee future results.
