In a worst-case scenario, the selling could continue and cause a “death spiral” in the price of bitcoin as you have continuous selling pressure on the price of bitcoin. This long-term sell pressure could result in a cascading effect wherein the lower price takes out more and more efficient mining operations.

Additionally, we see the redistribution of bitcoin mining hardware through firesales, with individuals and businesses buying up cheap ASICS and moving them to regions where they are profitable to use. When the market stabilises, the Bitcoin network will be left standing on the shoulders of the most resilient and most profitable miners — strengthening it for future cycles and volatility.