Bitcoin (BTC) has undergone a sharp price correction, tumbling from a peak of nearly $110,000 in late 2024 to approximately $84,000 as of March 18, 2025. But for more perspective, BTC had actually dropped to around $16,000 in the last cycle after peaking at about $69,000 in the last crypto market bull run of 2021.
This decline coincides with significant outflows from digital assets, as reported by CoinShares, with major crypto funds losing billions over recent weeks.
Bitcoin exchange-traded funds (ETFs), finally launched with a lot of enthusiasm in January 2024, have seen their gains evaporate, reflecting broader market unease.
Yet, despite this volatility, key players like Strategy (formerly MicroStrategy), Metaplanet, and El Salvador persist in accumulating BTC, while others, like South Korea and Germany, diverge in their approaches, highlighting Bitcoin’s polarizing role in global finance.
Strategy, led by Michael Saylor, remains undeterred, recently adding $10 million worth of Bitcoin to its treasury, bringing its total to just under 500,000 BTC.
Saylor, a staunch advocate, views Bitcoin as an effective hedge against inflation, famously stating:
“There’s a word for people who store value in fiat—we call them poor.”
This aligns with Japan’s Metaplanet, which has mirrored Strategy’s playbook, boosting its BTC holdings to over 1,000 coins in 2024.
El Salvador, under President Nayib Bukele, continues its Bitcoin experiment, acquiring more despite IMF criticism over fiscal risks.
Samson Mow, CEO of JAN3, praises this resilience, noting:
“El Salvador’s strategy proves Bitcoin’s viability as a national asset, defying traditional skepticism.”
Contrastingly, South Korea’s recent rejection of BTC as a reserve asset reflects caution, with officials citing its volatility as a liability.
Germany’s 2024 sell-off of its Bitcoin stash, once valued at billions, now draws regret as prices soared post-sale.
Industry veteran Adam Back, Blockstream CEO, has criticized the move, saying:
“Germany’s timing was abysmal—selling low and missing a historic rally shows a lack of foresight.”
Meanwhile, BlackRock’s deepening focus on Bitcoin ETFs signals institutional acceptance.
Cathie Wood of ARK Invest reinforces this, asserting:
“Bitcoin’s integration into portfolios is inevitable; its volatility is a feature, not a flaw, for long-term growth.”
Yet, Bitcoin’s reputation as a risk asset—akin to stocks rather than a safe haven like gold, which recently hit record highs—complicates its narrative.
The U.S. stock market’s parallel decline suggests macroeconomic pressures, like rising interest rates or geopolitical uncertainty, are at play.
Dan Held, a crypto educator, observes:
“Bitcoin’s correlation with risk assets isn’t surprising—it’s still maturing. But its fundamentals remain unmatched.”
Anthony Pompliano, a digital assets and Fintech investor, adds:
“Corrections are healthy; they shake out weak hands and let the strong double down—like Strategy and El Salvador.”
The divide in perception persists. CoinShares data shows $6.4 billion in ETF outflows over five weeks, yet BlackRock’s iShares Bitcoin Trust (IBIT) retains significant assets, hinting at enduring institutional interest.
For Saylor, the dip is a buying opportunity:
“Bitcoin is the apex property of humanity.”
Critics, however, question its safe-haven status as gold outshines it during turbulence. It’s also worth noting that a prominent crypto whale has recently opened a substantial short position on Bitcoin (BTC) at $85,000, betting that the cryptocurrency’s price will decline further after its recent correction from a high of nearly $110,000.
This move, likely executed on a leveraged derivatives platform like Binance or BitMEX, reflects a bearish outlook amid significant market outflows and Bitcoin ETF struggles.
However, shorting BTC at this level carries considerable risks, particularly the threat of liquidation, which could pretty much wipe out the whale’s position if market dynamics shift abruptly and unexpectedly (as they typically do in crypto markets).
In crypto trading, a short position involves borrowing Bitcoin, selling it at the current price ($85,000 in this case), and aiming to repurchase it at a lower price to return the loan, pocketing the difference as profit.
Leverage—often 10x or higher—amplifies potential gains but also losses.
With $84 billion in trading volume over the past month (per CoinMarketCap) and institutional players like BlackRock still active, a sudden rally—perhaps spurred by Strategy’s ongoing BTC buys or positive ETF news—could push prices upward.
If BTC rebounds to $90,000, a 5.88% move, the whale’s losses would balloon with leverage, nearing liquidation territory.
Liquidation looms if market sentiment flips.
The whale’s fate hinges on whether Bitcoin’s risk-asset status drags it lower with stocks or if its fundamentals spark a recovery.
As Wood predicts a $1 million BTC by 2030, and Mow notably sees nation-state adoption accelerating, Bitcoin’s trajectory remains interesting to watch, even if it is from the sidelines without making any investments in the digital asset.