Part 7/10:
- In extreme cases, a panic event could see Bitcoin test $60,000 or even dip into the low $50,000s, especially if liquidation cascades occur.
Notably, Bitcoin has historically never fallen below its electrical cost of production, estimated at around $71,000 today**—a potential floor amid market stress.
How Should Investors Prepare?
Given this risk, strategic caution is advised:
Avoid high leverage: Amplified volatility could wipe out leveraged positions. A 50x leverage, for example, could lead to complete destruction in rapid price swings.
Monitor the USDJPY pair: A rapid climb of the yen against the dollar—say below 145 or 148—may signal the unwinding has begun.