Treasury Companies May Trigger the Next BTC Downturn
A prominent crypto analyst has issued a stark warning about Bitcoin’s future, predicting a severe correction of up to 80% in the next bear market. The strategist, known for accurately calling the 2022 Bitcoin bottom, says that corporate Bitcoin holders could become the primary source of selling pressure during the next market downturn.
“Bitcoin treasury companies… will be the reason for the next bear market being as violent as prior bear markets,” the analyst warned on social media.
Over $117 Billion in BTC Held by Companies
According to data from BitcoinTreasuries, private and public companies worldwide currently hold over 1.1 million BTC, valued at more than $117 billion. This includes well-known firms that adopted Bitcoin as part of their treasury reserves during the last bull cycle.
The concern is that these entities may offload large portions of their holdings during periods of declining prices or financial stress, amplifying the selling pressure and contributing to a potential cascade.
Historical Comparison: 2018 Bear Market
The analyst draws parallels with the 2018 bear market, when Bitcoin plunged nearly 85% from its then-all-time high of $20,000 to just $3,000.
“Whatever the top ends up being, 70-80% down from that would be my guess,” the strategist noted.
If Bitcoin were to top out near current cycle projections (e.g., around $150,000 to $180,000), an 80% drawdown could send the price back toward the $30,000–$36,000 range in a full-blown bear scenario.
Short-Term Outlook: Key Support at $101,000
Despite the long-term caution, the analyst remains bullish in the near term. However, he warned that a break below $101,000 could trigger a fast correction toward $95,000 or even $90,000.
“If we set a new low below $101,000, I could easily see us wipe towards $90,000 pretty quickly,” the strategist said in a recent session.
At the time of writing, Bitcoin trades around $105,438, holding above key support but showing signs of caution.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.