Bitcoin is heading towards an existential crisis: MicroStrategy risks are increasing

2026-02-13 11:04:53

Abstract generation in progress

The cryptocurrency market is in a critical state. The price of BTC has fallen from its all-time high of $126,080 reached in October 2025, and now stands at $67,020. This represents a 47% decline from the peak, raising serious concerns among investors about an impending major market turn. Financial analysts are increasingly warning of an existential crisis for major players holding aggressive positions.

BTC Decline and Psychological Barriers

The recent drop in Bitcoin has taken on catastrophic proportions. Compared to gold, BTC has lost about 60% of its value, indicating a deep reevaluation of investor sentiment toward cryptocurrencies. Against this backdrop, key psychological levels are becoming evident: the market is approaching the $61,000 mark, where the local maximum of the 2021 bull cycle was reached. Breaking through this barrier could trigger widespread panic and further declines.

MicroStrategy: Growing Losses and Financial Risks

A particularly concerning situation involves MicroStrategy, which has accumulated significant BTC holdings. According to Lookonchain analytics, the company currently owns bitcoins with unrealized losses exceeding $4.6 billion, as the current price is well below the average purchase price. The problem is compounded by investor Michael Saylor’s recent warning of a critical scenario: if BTC falls below $70,000, it could freeze credit markets for large holders like MicroStrategy, creating a chain reaction effect.

Critical Level $60,000: The Point of No Return

With Bitcoin’s current price around $67,000, the market is already on the brink of this dangerous scenario. If BTC drops below $60,000, it will create a true existential crisis for MicroStrategy and similar players who used borrowed funds to expand their positions. In such a development, the company’s losses will only increase, and its financial stability will be seriously threatened. Analysts advise holders of large BTC positions to carefully reassess their strategies before the market crosses this fateful threshold.

BTC4,57%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.