Opportunity Arises From the 2nd Major Bitcoin Crash- Margin Call and US$2 Trillion Tumble in Crypto Market.

Somebody told me that Bitcoin ("BTC") is the new digital "Gold". Well, it turns out to be extremely volatile and a bad store of value. From its high of US$125K just a few months back in October 2025, it had plummeted to US$61K at one point in time on 6th February 2026. The most shocking thing is I just bought S$1K worth of BTC at US$78K a few days ago on 3rd February 2026. Suddenly, it just dived further, I made another small nibble of S$500 when BTC hits US$72K and another S$500 at US$63K on 5th February and 6th February respectively. I think I have another S$500 entered at various prices from US$80K to US$90K during my account opening earlier this year with a crypto exchange approved by the Monetary Authority of Singapore ("MAS").  So in total, I have put up around S$2,500 in capital to speculate in BTC. 

Will Bitcoin Hit Zero?

Personally, I though that the fair value of BTC is zero. Nevertheless, it is highly unlikely to ever hit zero. The simple reason is that BTC has come to be embraced by the mainstream financial institution and many governments. In January 2024, the US SEC approved Bitcoin ETFs as financial products. JP Morgan and Goldman Sachs has also included BTC as part of their wealth management products. Hence institutional adoption in some way protects BTC from falling to zero. But no one knows exactly how much it will plunge further given the extreme pessimism in market sentiment. 

Additionally, many are waiting for MicroStrategy- which uses leverage to purchase BTC- to collapse. The domino effect if triggered will lead to some very ugly repercussion on global economies. 

Personal Thoughts

Since the flash crash in October 2025, crypto has once again suffered another rout in 2026. I thought that there is now an opening for those like myself who wants to diversify one's traditional investment portfolios into crypto assets.

My Tragic Venture Into Crypto- Huge Loss of 20%+ Investment Into Bitcoin within a Month.

Wow, looks like I am really leading a life of salted vegetable. My old curse of stocks plummeting immediately after I bought them, seems to extend into my first venture into Crypto currency. I got my first bitcoin in at around US$110,000 and the price has since plunged to US$86,800 as at November 23, 2025. This is a startling loss of around <-21%>. One fifth of my investment vaporised within a month it seems. I thought that Bitcoin is easy to invest in as there is no financial statements of a company that one needs to go through. Just go with trending and gut feel. With US dollars doomed and going to depreciate, I thought that Bitcoin, with its limited supply, will surely rise in value overtime. Additionally, with so many institutional players now offering Bitcoin products and corporations buying Bitcoin, its value like our Singapore car COEs will only appreciate over time. Well, how wrong I was and it crashed almost immediately. How low can Bitcoin go from here? Many folks have different estimate that range widely from US$25K to US$80K.  

Well good thing about Crypto trading is that one can buy in fraction. While my loss in percentage is staggering, my monetary loss is S$40 as I invested only S$200. I have since added another S$200 into Bitcoin to average down. I am currently using Independent Reserve platform to buy Bitcoin, will try to withdraw some cash out first to test its authenticity. Recently heard of too many investment scams. 

FTX Crypto Collapse A Good Parallel On How To Make Up Stories and Shift Blame At Workplace.

FTX's founder Sam Bankman-Fried is a genius. He has mentioned that for the billions of dollars being transferred from customer accounts at FTX to his own trading firm Alameda Research, is actually a "margin loan". Hence indirectly saying that it is not an illegal fund transfer. It is really amazing how FTX financial controls and internal governance actually allows a margin loan to single party to grow till so large. Even more puzzling is the fact that stakeholders such as customers, investors, employees and auditors themselves were not aware that the deposits in custody at FTX were being used for trading at Alameda Research. Who dare wins indeed! 

Maybe Bankman-Fried is now busy preparing a lot of documents to backdate them to cover his backside. We can probably employ the same tactic as Bankman-Fried in the real commercial workplace to make up story to cover up screw ups (this will make us similarly deplorable). 

The FTX crypto implosion is unfortunate and reflects the dark side of the promise of "decentralization" governance away from central authorities. I feel sorry for investors who were caught under the latest FTX collapse and I say this without any trace of schadenfreude. The inherent peril in investing in any assets is always there. It is just not possible to easily predict and prevent such collapse. Even Temasek Holdings poured US$200Mil of investments into funding FTX along with Blackrock. 

(Note: I lament at the complete loss of US$200Mil- imagine if the government had given out this to all Singaporeans instead and we can have $40 to S$50 per person to spend on an awesome meal at Din Tai Fung).