Bitcoin at Risk as Struggling Ethereum and Altcoins Weigh on Market

Investor Gary Cardone has issued a stark warning to the cryptocurrency market, suggesting that Bitcoin's price could plummet to $38,000 due to struggling Ethereum and failing altcoin projects.

Cardone, who recently stated that he would buy 1,000 Bitcoin at $55,000 but is 'done overpaying,' believes that there are currently more sellers than buyers in the market.

Ethereum's performance has been a major concern for Cardone, with him labeling it as a 'big risk.' He warns that if Ethereum and Bitmine Immersion Technologies Inc (BMNR), a Bitcoin treasury vehicle, cannot survive the current cycle, the fallout will have a devastating impact on Bitcoin.

Cardone also pointed out that capital is rotating out of crypto into upcoming AI IPOs, such as those from SpaceX, OpenAI, and Anthropic. He noted that legacy companies like IBM, Hewlett-Packard, and BlackBerry are trading like meme stocks, but the gains will go to the users of AI products, not the AI companies themselves.

Strategy (MSTR) may survive on Bitcoin treasury companies, Cardone said, but he described the broader treasury-company trade as 'embarrassing.'