Bitcoin Sees $1 Trillion Wiped Out as Saylor Remains Bullish

▲ Bitcoin, the digital gold/Source: Michael Saylor Twitter

A historic crash has unfolded in the cryptocurrency market, wiping out $1 trillion in market capitalization. However, Strategy Chairman Michael Saylor has instead expressed his strongest conviction yet in Bitcoin.

According to crypto-focused media outlet NewsBTC on February 21 (local time), Bitcoin (BTC) has seen its market capitalization plunge by approximately $1 trillion from its recent peak, spreading extreme fear among investors. Despite the prevailing pessimism, Saylor remains steadfast in his belief that Bitcoin is the most powerful store of value of the 21st century. He emphasized that the recent price decline does not undermine Bitcoin’s fundamental value.

As the market’s Fear and Greed Index enters the extreme fear zone and retail investors continue to capitulate, Saylor views the situation as an opportunity to accumulate assets. He analyzed that Bitcoin’s scarcity and properties as a digital network will increasingly give it an advantage over fiat currencies over time. Even as Bitcoin posts its worst start to a year and threatens the $80,000 level, Saylor’s message has served as a psychological support for the market’s downside.

Data from on-chain analytics firms Santiment and Glassnode indicate that activity on the Bitcoin network has sharply declined, reflecting severe fatigue among market participants. Open interest has also contracted, pointing to strained liquidity conditions. Saylor asserted that, like past downturns, this period serves to distinguish true value investors and that Bitcoin’s long-term upward trajectory remains intact.

Large-scale outflows from spot Bitcoin ETFs managed by major asset managers, including BlackRock, have intensified profit-taking pressure among institutions. Market analysts warn that as Bitcoin’s price falls below the average purchase cost, additional forced liquidations could follow. Nevertheless, Saylor maintains an optimistic outlook, arguing that short-term price fluctuations are merely noise and that Bitcoin’s adoption cycle has only just moved beyond its early stages.

With upcoming macroeconomic data releases and potential regulatory changes expected to determine the fate of the crypto market, global investors are closely watching whether Saylor’s bullish stance will translate into an actual market rebound. For Bitcoin to recover from the shock of a $1 trillion wipeout and restore its market capitalization, the conviction Saylor emphasizes must spread into broader market confidence. Currently, Bitcoin continues to struggle to hold support below key technical resistance levels.

Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses resulting from its use. The information should be interpreted solely for informational purposes.