Analyst says Bitcoin faces credibility test as long-term conviction weakens

DeFi analyst Ignas said on X that Bitcoin appears to be facing a credibility crisis beyond a sharp price drop. Ignas said conviction among investors who viewed Bitcoin as a store of value, or SoV, is weakening alongside the decline, while fewer investors are stepping in to buy the dip than in past downturns. Ignas added that some investors are shifting attention from BTC to other assets, including AI-related stocks and ZEC. In the current market, trading aimed at short-term rebounds could increase at the expense of long-term holding, Ignas said. Stablecoin outflows and concerns that Strategy (MSTR) could be excluded from MSCI indexes are also weighing on sentiment, according to Ignas. Ignas said the weakening trust in Bitcoin is more pronounced in BTC than in altcoins for those reasons. Even so, Ignas added that broader adoption and expansion of crypto technology is still continuing, citing Hyperliquid (HYPE) and NYSE-related partnerships involving Avalanche (AVAX).