Red alert for bitcoin (BTC)!

BTC has just entered a dangerous zone and the death spiralling may start soon.  Why?

Many crypto treasury companies with the business model of buying BTC as a store of value are deep under water now.  When they can't raise more monies through issuing shares to purchase BTC to prop up BTC prices, BTC prices will fall further because the crypto market has lost such big whale buyers.

It is without doubt that some of these crypto treasuries companies will collapse because they can no longer fund and sustain their crypto operations.  The US officials know this and Bessent has just declared that he won't order the US banks to bail out these crypto treasuries companies.

Let's look at the average purchase prices of some big crypto treasuries companies.

We can see that many crypto treasuries companies are deep under water because the current BTC price (around $70K) is way below their purchase prices.

This is a fundamental problem that the BTC market is facing now.