Reminder⏰

1. The government can change its stance at any time

Do you think cryptocurrency has been legalized? Wake up. One day, the U.S. might suddenly say, “BTC is illegal,” or the EU might come up with a “real-name transaction + heavy taxes,” and the market would collapse instantly. Don’t forget, in 2021, when China banned mining, Bitcoin dropped 30% in a week, and mining machines were sold as scrap metal.

2. Institutions are not here to pick up the pieces; they are here to make money

Right now, Bitcoin is held tightly by various financial giants, such as BlackRock, Fidelity, Grayscale... The problem is, once these people start to withdraw, it will be like a supermarket selling eggs at half price, with crowds pushing to get in. They dump their holdings, and we get crushed. Remember when Musk said “environmental concerns don’t work” in 2021? BTC evaporated over ten thousand dollars in a day, right?

3. Technological upheaval = systemic risk

Quantum computing may still be playing around in laboratories, but if one day it really can crack private keys, the entire Bitcoin network would be like going to war in open-crotch pants. I ask you, would you still dare to hold? This is the kind of panic level where you wouldn’t even dare to open your wallet.

4. A single word from the Federal Reserve, and the market kneels down

In 2022, when the Federal Reserve raised interest rates, BTC dropped from 69,000 to 15,000. Now, if interest rates continue to rise to 5% or even more, many people will choose “steady happiness” — depositing money in banks to earn interest, without caring how Bitcoin flies.

5. New coin effect: New influencers open, old stores close

Once a stronger, hotter new project appears, like if Ethereum ETF gets approved, the flow of funds will be like a floodgate opening. When SOL was hot, BTC’s market share was pulled away. Don’t talk about sentiment; in the crypto world, popularity is king.

6. Miner collapse mode

If Bitcoin drops below 58,000, a large number of miners will start losing on electricity costs, and to survive, they will have to collectively dump their holdings. As they sell, the price drops further; the more it drops, the more miners sell aggressively — this kind of chain reaction can really cause significant losses.

Bitcoin has always been synonymous with extreme volatility. It has been halved 11 times in history, each time being disparaged by the media, yet each time it bounces back. Now that it’s soaring, don’t forget that corrections can be even crazier.

Just remember two phrases:

• Don’t borrow money to trade crypto; the rooftop is too small to accommodate everyone.

• Don’t panic during a crash; it might just be an opportunity to scoop up cheap chips.

By the way, those who say “Bitcoin is dead” every year are still watching from the sidelines, while BTC continues to climb.