Retail investors are in a panic as Bitcoin collapses, while the big players have fled. The cryptocurrency market is once again facing a brutal downturn. Bitcoin, which surged to around 127,000 dollars last October, is now hovering at roughly 67,000 dollars, about half its former high.
As of the 20th, Bitcoin was trading around $67,150, roughly 50% below its October peak. The pullback follows a wave of large liquidations that left the market directionless. The drop also saw large funds unload approximately 86% of their Bitcoin ETFs, while altcoins have endured roughly 290 trillion won in panic selling over 13 months.
Bloomberg and other major crypto data firms say a structural breakdown in the asset market is accelerating capital outflows from hedge funds and other institutional investors. In particular, DAT (Digital Asset Treasury) firms like MicroStrategy (MSTR), which accumulate large amounts of tokens and issue stock, have become liquidity exits for tokens under protective arrangements, placing the risk squarely on retail investors. Messari reported this week that about $249.9 million flowed into stablecoins. Nimona notes that money is moving toward projects with real users, real profits, and functioning products, and he adds that investors should verify the user base and revenue model before buying new tokens, citing Aave’s proposal to return 100% of product revenue to token holders as a leading example of a new investment formula (token value equals real economic value).
Experts say this winter could speed up the market’s discernment of solid projects from weak ones. The era of hype-driven gains is ending, with the structure shifting toward projects that prove their performance.
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