When a stock loses 50%, it get “cheaper”, because the ratio of it’s earnings and dividend to price gets better. But for a crypto asset like BTC that has no earnings or dividend, it never gets cheaper, no matter how much lower it goes.
You touched on the central debate over Bitcoin.
Is it an asset, like stock?
Or, is it a medium of exchange, like a sovereign currency?
To me, it is a currency, and its value is exactly equal to the degree of confidence that savers, consumers, and business owners have in it.