Commenting on the recent sharp decline in the cryptocurrency market, analyst Charles Edwards argued that two fundamental structural problems were behind the price collapse.
According to Edwards, the current decline stems not only from macroeconomic pressures, but also directly from the perception of Bitcoin’s structural risk and leverage models within the industry.
Edwards said that Bitcoin is considered “the most vulnerable asset to quantum attacks in the world” and as a result, its correlation with stocks and gold has collapsed by 2025. According to the analyst, investors have begun to assess long-term security risks, leading to divergence from traditional risk assets. This divergence, coupled with weak prices throughout the year, increased selling pressure.
The second point highlighted by the analyst is the “Treasury Company” model. Edwards noted that hundreds of companies are adding Bitcoin to their balance sheets, almost acting as indirect “Bitcoin ETFs,” but that a significant portion of these structures are growing through leverage incentives. According to the analyst, the fact that nearly 200 Treasury companies follow similar strategies has increased systemic fragility and called into question the sustainability of the model.
Edwards pointed out that during this process, long-term investors engaged in heavy selling throughout 2025, and there was also a “wave of exodus” among miners. He said that with the migration of miners, there was a decrease in enterprise value (EV) and production costs, and many digital asset treasury (DAT) structures were even falling below the cost basis. He argued that this situation led to a chain reaction of loss of value.
However, Edwards argued that a strong revaluation of Bitcoin could occur if concrete progress is made towards solving the current problems. But the analyst noted that it would be difficult for the sector to recover without confronting these two fundamental problems, warning that volatility and painful price movements could continue in the short term.
*This does not constitute investment advice.
