What worries me about crypto?

Do you know what worries me about crypto?

Many are convinced that BTC cannot update the lows of the previous cycle ($15k) simply because this has never happened before, but this very fact makes this kind of crash the most profitable. Almost nobody expects it and almost nobody is insured against it.

Take Strategy: over the recent time, they have sold several times. Their average purchase price is $75k, meaning they are already selling at a loss. Bitcoin is $63k today. And what if the price dips to $50k? What problems and obligations will they have then? And what about $40k for 1 BTC? Here the knees already start shaking.

Someone will say: "At this price there will be people willing to buy the sell-off!" But let's look at the world of finance globally. Where is all the money now? In AI. It is hard to deny the bubble and overbought state of AI companies.

Let us hypothetically imagine what will happen if someone decides to pull several billion out of AI in order to buy BTC at $50k. This can only create even more fragility for the whole technology sector, investors will lose a lot of money, it will simply evaporate together with the share price. And those who manage to pull out will wait until the whole pyramid collapses and the dust settles.

What will happen to Strategy's assets at that moment? God only knows.

I will not reason further. The main thing is to understand one thing - Strategy is far from being on top, global liquidity is massively in AI, free cash is scarce, and the power and coolness of AI has nothing to do with AI company shares and this whole bubble. All of this together smells bad and this worries me.