Is Bitcoin heading for chaos? | Source: Image created with Gemini
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Key Takeaways
Bitcoin plunged to $85,000, its lowest level since April.
Its harshest critics have warned of months of chaos.
Long-term believers remain unfazed.
Bitcoin sank to $85,000 on Friday as sentiment across the crypto industry continued to deteriorate, with some harsh critics warning BTC could be heading into “months of chaos.”
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Bitcoin’s price fell as low as $85,422 early on Friday and continued to hover just above the $85,000 mark.
The move marked an 8% decrease over the past 24 hours and the lowest level since April, when it briefly slipped under $75,000.
“Bitcoin retreated to the $85,000 level after briefly climbing to $92,000 following Nvidia’s earnings results,” Ashish Singhal, co-founder of crypto exchange CoinSwitch, told Money Control.
Further price falls depend on whether Bitcoin can hold the $85,000 level, the analyst said, though critics have warned of deeper losses ahead.
CCN analyst Valdrin Tahiri said this is triggering “major fears that the bull market has already ended.”
Bitcoin Slammed By Critics
Skeptics have pointed to the latest decline as evidence that Bitcoin’s troubles are far from over, with its harshest critics claiming a “cascading crash” may be looming.
Market commentator and Bitcoin skeptic Jacob King wrote on X that traders “don’t realize how much chaos is coming for Bitcoin in the next few months.”
“Bitcoin mining has entered its most unprofitable stretch in a decade,” he wrote. “It currently costs a whopping $112,000 to mine a single Bitcoin, that’s now only worth $86K and falling fast.”
Jacob King has slammed Bitcoin on X. | Source: X
King added that it was “only a matter of time before miners shut down, the network shrinks, and a cascading crash follows.”
Veteran gold advocate Peter Schiff reiterated his long-held bearish stance, saying Bitcoin’s performance looks far worse when compared to the precious metal.
“Bitcoin is now down 43% priced in gold,” Schiff posted.
“A liquidity crisis is developing in crypto and spreading to other assets, including precious-metals mining stocks.”
Bitcoin is now down 43% priced in gold. A liquidity crisis is developing in crypto and spreading to other assets, including precious-metals mining stocks. Sell Bitcoin and crypto-related equities before they go much lower, and buy the dip in the miners before they go much higher!
He urged followers, as he often does, to “sell Bitcoin and crypto-related equities before they go much lower, and buy the dip in the miners before they go much higher!”
Believers Remain Confident
Not all industry voices see reason for alarm.
On Tuesday, former U.K. Chancellor Kwasi Kwarteng adopted a contrarian view, urging investors to treat the pullback in Bitcoin’s price as an opportunity.
“Why is everyone having a meltdown over the Bitcoin price?” he wrote on X.
Kwasi Kwarteng surprised followers with his Bitcoin weigh in | Source: X
“This is what we want, right? We can stack more Bitcoin for less… basic economics. Ten years from now, it’ll be such an insignificant pullback.”
His comments drew surprise from some observers, who questioned where this conviction was during his 38 days in office in 2022.
Responding to questions about why he didn’t support the asset while in government, Kwarteng said: “Bitcoin wouldn’t work as legal tender. When I was in government, we just wasn’t talking about this.”
Speaking to journalist Natalie Brunell, Alfred called Bitcoin “the most important asset… in all of human history to own.”
He projected that Bitcoin could rise to $150,000 to $200,000, noting that equities tied to the sector could rally “in an exponential fashion” if his thesis proves correct.
“I’m an equity-focused investor and I’m comfortable with volatility,” he added.
Is More “Chaos” Coming To Bitcoin’s Price?
Some analysts warn that Bitcoin’s downturn is far from over, with several key indicators pointing to further weakness.
Valdrin Tahiri, an analyst at CCN, said in a new report the latest leg down strongly suggests that Bitcoin has entered a bearish phase.
“Bitcoin’s 32% decrease since the all-time high has all but confirmed that the price is in a bear market.”
Tahiri warned that even deeper declines could be likely, especially if market sentiment surrounding Strategy turns negative.
“The decline could worsen even further if MSTR serves as an indicator of where Bitcoin is headed next. While Saylor could hold his position at a loss, the negative sentiment that would create could exacerbate the ongoing crypto bear market.”
According to Tahiri, the technical picture remains firmly in the red.
“Besides the severity of the crash, there are no bullish trend reversal signs. On the contrary, all indications suggest that Bitcoin will continue to decline.”
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
