Bitcoin Investors Are 'Rage Quitting' as Long-Time Crypto Bulls Begin Offloading BTC Holdings

Bitcoin prices continued to slump, sliding over 4.9% in the past 24 hours to hover around $69,393 per token as of writing this article.

Bitcoin has been facing extreme volatility in recent months, worsened by the ongoing Middle East conflict. Amid rampant speculation and forecasts for Bitcoin, long-time advocates have now started dumping their holdings, sparking concerns about the beginning of the end for Bitcoin.

Recently, billionaire investor Mark Cuban, who had once described Bitcoin as a superior version of gold, sold 80% of his Bitcoin stake after years of holding and advocating for the digital asset. His drastic change in crypto sentiment was brought about by the failure of the token to perform amid the ongoing Middle East crisis, dollar weakness, and extreme economic volatility.

He said in an episode of the Portfolio Players podcast that Bitcoin has not been behaving like a safe-haven asset since the conflict.

'When all this s**t hit the fan with the Iran war, Bitcoin was always the best alternative to fiat currency losing its value and I always thought it was a better version of gold than gold. Well, gold just blew up... bitcoin dropped. And every time the dollar dropped, bitcoin should've gone up ... and it just didn't do that,' Cuban had said.

Why Are Bitcoin Investors Are 'Rage Quitting'

Meanwhile, Fundstrat's Tom Lee, who is also the board chair of Bitmine Immersion Technologies, said that the crypto crash has triggered 'rage quitting' among investors, further worsened by Cuban selling the majority of his crypto stake.

'I think Mark is right, crypto has been disappointing, because crypto should move with, you know, equity markets, and it should be rallying with software. Software has really started to rally big, and crypto hasn't moved. So, I think there are what I call quote rage quitting people selling here as if something is wrong,' Lee had explained.

He believes that the ongoing BTC selloff is a classic market bottom, describing it as 'what always happens at the end of crypto winter.' However, Lee continues to believe the long-term bull case for Bitcoin and Ethereum is still alive despite the current weakness.

He added that Bitcoin and Ethereum 'are really the future of money because mass and compute or compute and energy, however Elon puts it, really are what's scarce.' Lee believes this growth is due to the emergence of AI. 'You need decentralized identity and verification. That's really what crypto does,' Lee had mentioned.

The crypto selloff could also be attributed to Strategy's Michael Saylor selling 32 BTCs recently, marking the company's first sale since December 2022, which has equally rattled markets and added to the BTC price downtrend. Even Rich Dad Poor Dad author Robert Kiyosaki warned his fanbase this week that investing in Bitcoin and gold on hype could prove costly after repeatedly urging investors to pile on these assets for over a year.

How to Value Cryptocurrencies Today, According to Lee

While highlighting that tokenisation on Wall Street considerably improves the efficiency of how money moves, Lee said he generally uses two anchors to value cryptocurrencies today.

He first looks at network usage, like wallets and activity per wallet, which still account for 87% of the Bitcoin price rise. Lee believes that this trend could imply that BTC value should increase as adoption and transactions rise.

Secondly, Lee compares cryptocurrencies against gold. He thinks that if BTC had the network value of the precious metal, it would've been worth around $2 million per token today, adding that gold is 'not as scarce as Bitcoin.'

In terms of Ethereum, Lee concluded that every dollar of tokenised assets has historically created around a dollar of value in ETH, so 'if you believe Wall Street's going to tokenize, Ethereum's price should go up a lot.'

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