The latest selloff tests investor conviction after years in which holding through volatility had rewarded Bitcoin buyers.
Bitcoin has dropped nearly half from the record high above $123,000 reached in July 2025, marking another sharp reversal for an asset known for large boom-and-bust cycles. The move underscores how quickly sentiment can turn in crypto markets and puts pressure on investors who had been rewarded in previous years for holding through volatility. The source frames the decline as the latest test of investors’ mettle after a long period in which staying invested through turbulence paid off.