Maybe the demand for ASICs was what pumped BTC so high in the first place. Now that the difficulty is skyrocketing the demand for ASICs is going back down and BTC is going back to its normal value.
Indeed it was asic demand that drove btc price up.
I agree. However, I believe it will ultimately drive it down (for a short period). If you look at it from a miner's perspective, if one of their primary reasons for bitcoin use was due to it being profitable for them, they are less likely to utilize bitcoin when they are no longer able to make profit from it. Think of it as a job. If your job is taken from you or you lose it, you no longer have funds to spend on it.
Additionally, I think of it similar to the way of once owning a factory and being able to produce goods at far lower prices. Now that the owner no longer has the factory and must pay retail pricing, they somewhat shun it and perhaps even are saddened by it. They may lack the necessary skillsets to attain it from other means such as trading.
This is specifically in regards to non-asic miners.
