Bitcoin's Dramatic Decline Shifts Perception to Speculative Asset
Bitcoin has experienced a significant decline, plummeting from a peak of $126,000 in October to under $80,000 recently. This drastic drop underscores its transformation from a "revolutionary asset" outside traditional finance to a speculative tool heavily influenced by market fluctuations and central bank decisions.
According to "Le Figaro", this rapid decline occurred within a few weeks, following a wave of optimism in the market after the election of U.S. President Donald Trump, during which Bitcoin maintained levels above $100,000 before abruptly falling after tariff announcements.
While volatility is not new for Bitcoin, its current trajectory is reminiscent of the 2022 collapse when its value dropped to $15,000 following the bankruptcy of the exchange platform "FTX".
Financial analysts suggest that the market's treatment of cryptocurrencies as a "risk appetite indicator" explains much of this decline. With growing concerns on Wall Street about a potential bubble in the artificial intelligence sector, investors have begun to offload riskier assets. Consequently, Bitcoin is no longer seen as a "monetary alternative" but rather moves in tandem with high-volatility tech stocks, closely watching statements from the Federal Reserve and fluctuations in the Nasdaq.
The decline is not limited to Bitcoin; observers have noted that Ethereum has lost 40% of its value since its peak in August, while cryptocurrencies like Solana and BNB have seen steep declines ranging from 30% to 35%. Additionally, Dogecoin, known for its volatility, has lost over half its value in 11 months, and XRP has erased all its gains for the year. A common pattern emerges across these currencies: a summer increase, an autumn peak, followed by a sharp decline amid market turbulence.
Experts conclude that the current market conditions reflect a harsh reality for major markets that have thrived on liquidity and speculation. The narratives of "financial revolution" offer no protection as they are swept up in the same wave of anxiety impacting riskier stocks on Wall Street.
