Opinion: Bitcoin's sharp decline raises concerns about a collapse in the cryptocurrency market

According to Forbes, Bitcoin has recently experienced a significant pullback, raising concerns in the market about a new round of "deep declines" in crypto assets. Over the past week, the price of Bitcoin has dropped by about 10%, briefly falling below the $80,000 mark, with the latest low reaching $73,000, followed by a slight rebound to above $75,000. Amid this sudden shift in market sentiment, CZ publicly stated that his confidence in a "super cycle" for Bitcoin in 2026 has significantly decreased.

CZ mentioned that due to market panic (FUD), extreme liquidation events, and geopolitical uncertainties, the current environment will have "very high" volatility. While a super cycle could still occur, the probability has dropped to about 50%. Meanwhile, well-known investor and the inspiration for "The Big Short," Michael Burry, warned that Bitcoin's price could further drop to $50,000. He pointed out that if it falls to that level, Bitcoin mining companies may face severe financial pressure and even bankruptcy risks.

Concerns about Bitcoin's weakness in the market have also been exacerbated by a rapid flow of funds into traditional safe-haven assets like gold and silver. LMAX Group CEO David Mercer stated that the current market is experiencing "collateral tightening," with the speed of risk diffusion outpacing the support system, leading to significantly amplified volatility. Analysts believe that in the context of rising gold prices and crypto assets being revalued as "high-risk assets," Bitcoin's short-term performance will still heavily depend on changes in the macro environment and market sentiment.