Bitcoin’s (BTC-USD) biggest problem isn’t regulation or even volatility — it’s that most investors aren’t ready to embrace the roller coaster.

“What we’re seeing in crypto is that it’s revealing itself to still be just a primarily speculative asset,” Tom Essaye, founder of Sevens Report Research, told Yahoo Finance’s Opening Bid. “I think a lot of investors thought that it’s maturing beyond just a speculative asset, but it’s not there yet.”

Positive policy signals, including a pro-crypto stance from the Trump administration, have fueled optimism, but the market’s recent slide shows fundamentals are still lagging.

Bitcoin has slid roughly 30% from its recent highs, with Monday alone seeing a more than 6% drop, Essaye noted in a new report. There hasn’t been any major policy shift, corporate scandal, or regulatory blowup to trigger the sell-off, he added.

He argues that the “only reason to own bitcoin and crypto in general is because you think someone will pay more for it than you bought it for today. And if that opinion changes, then down it goes without a lot of support.”

Additionally, crypto is still in its early days for adoption. The long-term appeal of bitcoin, the largest cryptocurrency by market capitalization, is tied to corporate balance sheets, financial transactions, and a growing number of spot bitcoin exchange-traded funds (ETFs).

Read more: What is bitcoin, and how does it work?

But collectively, these uses remain small. ETFs account for just 6% of bitcoin supply, according to Sevens Report. That limited adoption underscores the asset’s speculative nature and the gap between hype and real-world usage.

“Is crypto maturing? … Absolutely. Is it becoming more fundamentally demanded? Absolutely,” Essaye said. “But it’s still very early in that process, and it’s still a wild ride, as we’re learning.”

Without broader adoption, most investors remain on the sidelines, leaving bitcoin vulnerable to sharp swings when sentiment shifts. Its price can move dramatically on technical triggers, speculative flows, or even social media narratives.

Bitcoin’s big fall on Monday may in part be tied to comments from Strategy (MSTR) CEO Phong Le, who said the company would consider selling some of its bitcoin as a “last resort” to fund its dividend payments, per Essaye.

There’s also a psychological factor looming large.

Essaye warns of a critical threshold: if bitcoin drops below $80,000 to $81,000, a “trap door” could open, accelerating selling. Many late ETF investors might dump positions to capture tax-loss benefits, potentially pushing bitcoin into the $70,000s or $60,000s before year-end.