Bitcoin's recent decline has led some investors to question whether the cryptocurrency is still viable. The coin's value has plummeted by over 40% since its peak in October 2025, with many experts warning that this could be a sign of its eventual demise.
One argument put forward is that Bitcoin's value is being artificially inflated by a single entity, Strategy, which holds around 4% of the maximum supply. However, this concern is overstated, as Strategy's demand accounts for only 7-9% of net Bitcoin inflows.
Another issue raised is that Bitcoin has become disconnected from other risk assets in the market, such as tech stocks and ETFs. This bearish decoupling suggests that capital is actively disfavoring Bitcoin due to its perceived lack of value.
Despite these concerns, it's worth noting that past periods of disconnect between Bitcoin and other markets have eventually resolved themselves. The protocol's fundamentals remain intact, including its scarcity, which has been a key factor in its appeal.