1/ In the same way that as long as I don't sell my GME share it's an unrealized loss. It's something I can afford to do as an individual because I can throw a hundred bucks away for the lulz. It's another thing to be a country and to make Bitcoin a mandatorily accepted currency and gamble your people's money away for the lulz.
2/ You've seen how cryptocurrency has behaved in the past ten years, and you think "market cycles" are a thing, in this domain ? There is nothing cyclic about cryptocurrency prices. There is nothing rational about these prices. It'll go back up the next time there's a successful scam managing to raise enough money to buy 2 minutes of Matt Damon telling you you're a limp dick for not putting it all in $LUNA, but it'll still be propped by nothing.
3/ "The fundamentals are here" is peak crypto apologist in denial speak. There are no fundamentals to bitcoin's current price, aside from "funny computer money goes up". All of Bitcoin's current value is propped up by speculation, lies (mmmh delicious unbacked Tether being a massive cause for the rise of its value).