Bitcoin's price decline impacts the cryptocurrency value discovery mechanism by increasing market volatility and shaking investor confidence. As a leading asset, Bitcoin often sets the tone for the broader crypto market. A downturn can trigger panic selling, amplifying price swings and distorting the perceived value of other cryptocurrencies. This disrupts the organic process of price discovery, where supply, demand, and utility typically align to reflect true value. Moreover, it exposes speculative bubbles, as fear-driven reactions overshadow fundamentals like blockchain adoption or technological utility. However, it can also refine the mechanism over time—weeding out weaker projects and forcing the market to reassess intrinsic worth. Data from X posts and web trends suggest that while short-term chaos ensues, long-term value discovery may strengthen as the market matures and stabilizes.