Warning to Bitcoin-Holding Companies…"An 80% Decline Is Still Possible, Reconfigure Your Strategy"

There has been a warning that Bitcoin (BTC) still remains an asset that could see a significant drop, and that companies holding Bitcoin reserves need to restructure their business models.

According to Cointelegraph on the 4th (local time), Saifedean Ammous, author of 'The Bitcoin Standard,' said on a podcast, "Despite institutional participation and changes in the virtual asset (cryptocurrency) market, Bitcoin still remains an asset that can drop as much as 80% from its bull market peak," and added, "If your (Bitcoin-holding) company's business model cannot withstand an 80% drop, you need to restructure it immediately." He also noted, "We are now in a very unstable position, at the price peak," warning that "the resulting decline could be quite substantial."

He particularly highlighted Bitcoin's historical price volatility. Ammous explained, "In previous cycles, Bitcoin's peak occurred between one year and a year and a half after the last block reward halving," and "in the past, drops of about 70% to 80% have occurred, and it could happen again." He further pointed out, "There is a possibility that Bitcoin could surpass $200,000 in this cycle, but it has already risen roughly 600% from the previous low ($15,000). That is by no means a small figure," once again emphasizing the possibility of a bearish trend for Bitcoin.