Prominent venture capitalist Vinny Lingham has issued a stark warning to the cryptocurrency market, stating that Bitcoin holding the $60,000 support level is no longer just about short-term price action but about the survival of the current market cycle. With Bitcoin trading down 4.4% at $64,498 earlier this week, Lingham outlined a potential "2022-type blow up" if the asset fails to defend this critical level.
According to Lingham, the immediate danger zone sits at $64,000. If Bitcoin loses this level, he predicts the price will "retest $60k very quickly," though a stabilization bounce could still occur. However, the stakes change dramatically at $60,000, which he calls the "most critical support level of this cycle." If Bitcoin hits $60,000 and executes a sharp, V-shaped bounce, it would form a "double bottom," establishing strong support for a future rally.
Lingham warned that if the $60,000 floor gives way, the consequences would be catastrophic. "If we lose $60k, violent cascading liquidations ensue, and you can kiss any recovery goodbye, at least until the next halving approaches," he wrote. He further predicted that breaking $60,000 would trigger systemic failures among corporate holders of crypto, stating, "You’ll probably see a bunch of treasury companies for both BTC and ETH blow up."
This warning comes as Bitcoin has broken below the $63,000 mark, trading at $62,945 late Tuesday. The largest cryptocurrency has extended a brutal month-long correction, shedding nearly 50% of its value since its October 2025 highs.
In a recent interview, John Haar, Managing Director of Swan Bitcoin, addressed the confusion among investors watching institutional adoption rise while prices decline. "I think we do have to just be honest about the fact that most people did not predict a 50% price decline," Haar stated. He pointed to massive institutional inflows that seemingly contradict the bearish price action, including Harvard owning half a billion dollars worth of Bitcoin, Middle Eastern sovereign wealth funds owning similar amounts, and Vanguard opening its doors to Bitcoin ETF purchases.
Haar pinned the blame for the price decline on the derivatives market rather than spot selling, explaining that leveraged speculative traders can cause dramatic unwinds when their bets go wrong. He suggested the rapid descent from the $127,000 highs resulted from these players being forcibly liquidated. Despite the current downturn, Haar remains bullish on Bitcoin's long-term trajectory, noting that its "floors" keep rising from $3k to $16k to now $65k.
Lingham specifically warned that MicroStrategy (MSTR), the largest corporate holder of Bitcoin, could see its stock price drop below $100 if Bitcoin loses the $60,000 support level.
