Bitcoin in a downward trend: an existential crisis for MicroStrategy and the market as a whole

Fren_Not_Food · 2026-02-22T12:02:53+00:00

The Bitcoin market is facing a critical moment, with prices down 45% from last year's peak. Experts warn of a potential existential crisis for companies like MicroStrategy, as further declines could trigger systemic risks across the market. Investors are urged to reconsider their positions before it is too late.

Fren_Not_Food

2026-02-22 12:02:53

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The Bitcoin market is experiencing a critical moment. The cryptocurrency has fallen 45% from its all-time high of $126,080, recorded in October 2025, and is in a state of widespread demoralization. The current price around $68,200 brings BTC close to the $61,000 level — a psychologically important peak from the 2021 cycle.

The scale of the decline exceeds expectations

Well-known cryptocurrency critic Peter Schiff does not hide his opinion: it’s time to urgently reduce Bitcoin holdings. He estimates that BTC has already fallen about 60% relative to gold, indicating a complete loss of momentum. Schiff directly called the current situation an existential crisis for the entire sector, advising crypto holders to exit their positions before things get worse.

This week, investor Michael Berry issued his own warning: a drop below $70,000 could freeze credit markets for major players like MicroStrategy. Now that the price has reached $68,200, this grim scenario is becoming increasingly plausible.

MicroStrategy: losses turning into systemic risk

According to analysts at Lookonchain, MicroStrategy is already carrying unrealized losses of over $4.6 billion. This happened because BTC’s price fell significantly below the average cost of its holdings. For Michael Saylor and his aggressive Bitcoin accumulation strategy, this has become a serious test.

Schiff predicts that a drop in BTC below $60,000 will create a true existential crisis for MicroStrategy. At this level, the company’s losses will begin to expand exponentially, and refinancing credit lines will become problematic.

Chain reaction of risk in the market

It is important to understand that MicroStrategy’s risk is not an isolated problem. The company has taken significant loans secured by Bitcoin. If the price falls even further, it could trigger a cascade effect, freezing access to credit not only for MicroStrategy but also for other major holders. The $60,000 level becomes a critical threshold below which a systemic crisis begins.

The countdown has started

The existential crisis that Schiff and Berry talk about means that for many investors, the window to exit may be closing. Every day of decline brings the market closer to a point of no return, after which recovery will be unlikely in the medium term.

BTC-1.34%

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