Alarm Bells Ring As Experts Warn Bitcoin Crash

The cryptocurrency market is once again on edge as sector experts warn that the Crypto bubble could burst at any moment. This comes as Bitcoin recently soared to an all time high of more than USD 127,000 in October 2024.

Bitcoin continues to tumble now falling below USD 70,000 this week and at one point sitting around USD 62,900. That is a 30% decline since the start of the year and nearly a 50% pullback from its peak.

Some analysts are stating this is more than just another correction. It’s the beginning of something much worse and investors should heed warning.

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A Cold Crypto Winter Ahead?

Bloomberg Intelligence strategist Mike McGlone has issued a warning that the crypto “bubble is imploding” and that Bitcoin could collapse by another 85%. He believes it might even be revisiting the USD 10,000 level. The news has seemed to spooked many with Bitcoin charts reflecting the fear.

McGlone dives into the macro environment that he believes has fuelled Bitcoin’s rise over the past decade is now shifting. He argues that the “buy the dip mantra since 2008 may be over,” pointing to a changing investment landscape.

Bitcoin has already crashed nearly 30% in the past month and wiped out massive amounts of market value across the broader crypto ecosystem. Roughly around USD 2 trillion has disappeared during the downturn. Investors have pulled roughly USD 678 million from Bitcoin exchange traded funds (ETFs) so far in February alone which saw a USD 6 billion selloff since November.

In 2025 ETFs were some of the biggest buyers of Bitcoin. Deutsche Bank analysts report that US spot Bitcoin ETFs saw more than USD 3 billion in outflows in January than a USD 7 billion outflow in November followed by USD 2 billion in December 2025. They believe this pattern may suggest traditional investors are leaving the sector.

U.S The Crypto Safe Haven?

Bitcoin’s bull run in late 2024 and early 2025 was believed to have been caused in part by expectations of pro-crypto policies under President Donald Trump. These were announced on his campaign trail with Trump promising to make the US the “crypto capital of the planet” and raised the idea of a national Bitcoin strategic reserve.

However, after taking office he followed through with plans for a national crypto reserve and introduced draft legislation aimed at clarifying regulatory oversight. His family’s crypto venture, World Liberty Financial (WLFI) even launched a dollar pegged stablecoin called USD1. But this has now led to corruption allegations.

Allegations Raised Against President Trump

A USD 500 million investment into World Liberty Financial by Sheikh Tahnoon bin Zayed Al Nahyan who is a senior Emirati royal and national security adviser, has sparked accusations of corruption according to Senator Elizabeth Warren. Ethics experts have raised concerns about potential conflicts of interest, particularly after the US approved exports of advanced Nvidia AI chips to the UAE months later.

While there is no direct evidence of a quid pro quo or that the deal is linked some argue the optics create a “structural conflict of interest.” The White House denies any wrongdoing, stating that Trump is not involved in running his businesses.

Regardless of the legal arguments, political controversy adds another layer of uncertainty to an already fragile market. Investors who once bet on regulatory clarity boosting prices are now grappling with reputational and geopolitical risks.

It is also important to note that patterns do emerge amongst cryptocurrency and the current timing is moving closer to U.S tax reporting periods where we often see investors selling digital assets to cover Tax Bills and capital gains taxes.

what are your thoughts? Will Bitcoin continue to fall or is it just the natural cycle?

image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

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