On February 9th, the Financial Times published an article stating that Bitcoin may have experienced dozens of major crashes, hundreds of crypto companies may have gone bankrupt, and countless people may have lost their life savings, but every time Bitcoin falls, it always rebounds. Those with the ability to hold on are able to persist, and the cognitive memory generated by each rebound makes people believe that the cryptocurrency they admire will exist forever. Since its inception, Bitcoin has been on a path destined to end in tragedy.
This week, Bitcoin experienced its worst crash since 2022, falling as low as $60,000, wiping out all gains since Trump's 2024 re-election and more than halving from its all-time high of over $127,000 last October. According to Coinglass, approximately $1.25 billion worth of Bitcoin positions were forcibly liquidated in just 24 hours from Thursday to Friday.
The United States does indeed have a leader who comes closest to being a "Bitcoin president," and whose family has interests in crypto assets. However, even with the establishment of a "strategic Bitcoin reserve," the pardoning of a large number of convicted crypto criminals, the allowance for Americans to include crypto assets in their 401(k) retirement accounts, and the claim that he ended former President Biden's "crypto war" in his first 200 days in office, Trump's presence in the White House could not stem the selling pressure.
We may not have truly witnessed Bitcoin's final "death spiral" yet; I cannot predict when it will arrive. Judging the end of a speculative frenzy solely by faith is extremely difficult, and Bitcoin may still experience several rallies (as of this writing, it has rallied to approximately $70,000). But confidence is waning. People are beginning to realize that an asset sustained solely by wishful thinking has no bottom line. Ask yourself: Will this thing still exist 100 years from now? Remember, "It's not how you fall, it's how you land."
