Bitcoin drops 30% from its high, prompting investors to reconsider their strategy choices

NFTragedy · 2026-01-19T09:09:56+00:00

The recent correction in the crypto market has caused many investors to change their perspectives, with Bitcoin falling about 30% from its October high. Bitcoin vaults and mining companies have been severely impacted, with stock prices dropping significantly. Analysts believe that investors are conducting rational valuation reassessments and are more inclined toward active risk management strategies rather than blindly pursuing high-leverage returns.

NFTragedy

2026-01-19 09:09:56

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The recent adjustments in the crypto market have caused many investors to change their minds. Since Bitcoin reached a peak of $126,223 in early October, this decline has brought the price down by about 30%, and some Bitcoin-related stocks and companies have been hit even harder.

“Bitcoin Vaults” and Mining Companies Become Major Victims

Take Strategy, a “Bitcoin vault company,” for example. From the October high, it has fallen by 54%. Looking back to mid-July, the decline is as much as 63%. Japan’s Metaplanet and a group of followers have also been heavily impacted.

Mining companies are also struggling. IREN, CleanSpark, Riot, and MARA, which originally promoted a “crypto + AI” dual concept, once performed strongly. However, VanEck Onchain Economy ETF manager Matthew Sigel pointed out that these companies now face a harsh reality — in a deteriorating macro environment, with high debt levels and ongoing financing needs, their previous high valuations are unsustainable, and profitability is increasingly questioned.

Investors’ Wake-Up Call

Analyst Lyn Alden believes that these sectors previously formed a kind of “local bubble,” and now investors are conducting a rational valuation reassessment.

This reflects a fundamental issue with the investment approach itself. Coinbase Institutional Strategy Director John D’Agostino said that the key is not about how many investment tools are available — you can hold coins directly, buy spot ETFs, trade options and futures, or invest in mining companies, “Bitcoin vault companies,” exchanges, and infrastructure providers — the question is how investors use leverage and whether they have implemented sufficient risk hedging.

A clear shift is that more investors are now favoring strategies with active risk management capabilities rather than blindly pursuing high leverage and high returns. This market correction is actually pushing the entire investment ecosystem toward greater rationality and maturity.

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