A ONCE-IN-A-LIFETIME buying opportunity is how one trader describes the current price of Bitcoin, as the cryptocurrency, which soared above $122,000 last year, now languishes below $70,000, having briefly flirted with $60,000 at the tail end of last week.
But other financial experts are less convinced, with one saying “this could be the beginning of the end for mainstream holding of crypto” and another that the crash reinforces how Bitcoin “remains a speculative asset”.
There has been no clear single reason, such as a drastic regulatory clampdown, for Bitcoin’s latest collapse.
The reasons given are nebulous and range from general macroeconomic uncertainty and forced margin calls by Hong Kong ‘whales’ (large institutional investors) to collapsing belief in the wider crypto market and volatile precious metal prices.
As ever with Bitcoin, nobody is really sure why the crash came.
Equally, nobody knows where next for the asset, with some saying the latest crash represents a serious opportunity to buy and others suggesting it reaffirms why everyday investors should steer clear. Very clear.
Brutal Bitcoin sell-off
David Belle, Founder at trading platform, Fink Money, believes the crash was caused by a Hong Kong hedge fund making a margin call on bets that went wrong and being forced to sell Bitcoin to meet its obligations.
He believes the crash is just another chapter in the wider Bitcoin success story and not the beginning of a protracted ‘crypto winter’ — and certainly not the end.
Belle says: “The current sell-off of Bitcoin is brutal, that is not in doubt. Lots of leverage had built up on the long side in crypto and the first break occurred back in 2025 with the auto-deleveraging fiasco.
“But while it’s brutal now, the path for Bitcoin has always been similar to this, namely highly volatile but with big upside.
“There will be people in two years’ time probably kicking themselves that they didn’t buy at the current price.
“If you believe Bitcoin and cryptocurrencies more widely are the future, now could be a once-in-a-lifetime opportunity to buy in at a serious discount.”
Beginning of the end
Others are less convinced. Samuel Mather-Holgate, Managing Director at Swindon-based Mather and Murray Financial, a wealth management firm, said “the wheels have come off crypto”.
He continued: “It’s taken some time, but this could be the beginning of the end for mainstream holding of crypto. The genie is out of the bottle.
“While crypto will always have a place for nefarious transactions and areas where international transfers are next to impossible, crypto millionaires and significant portfolio holdings now look laughable.”
Scott Gallacher, Director at Leicester-based Rowley Turton, said many crypto apologists mistakenly perceive Bitcoin as a safe-haven asset, but that this latest sell-off highlights how that’s simply not the case.
Gallacher says: “The recent fall in the Bitcoin price illustrates that, despite claims from its supporters, Bitcoin is far from being a safe-haven asset. While traditional safe havens such as gold and silver have risen sharply during the latest period of uncertainty, Bitcoin has moved in the opposite direction.
“Whether this marks the beginning of a more permanent decline or simply a temporary setback before new highs is impossible to say.
“However, for me, the recent falls reinforce the view that Bitcoin remains a speculative asset rather than an investment.”
