Bitcoin's Recent Decline Highlights Shift from Revolutionary Asset to Speculative Tool

Bitcoin has seen a dramatic decline, plummeting from a peak of $126,000 in October to under $80,000 recently. This sharp drop illustrates its shift from a "revolutionary asset" outside the traditional financial system to a speculative tool heavily influenced by market fluctuations and central bank policies.

According to "Le Figaro," this rapid decline occurred within 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 unexpectedly dropping after tariff announcements.

While volatility is not new for Bitcoin, the current trajectory recalls the 2022 collapse when its value fell to $15,000 following the bankruptcy of the trading platform "FTX."

Financial analysts suggest that the way markets view cryptocurrencies as a "risk appetite index" largely explains this decline. With growing concerns on Wall Street about a potential bubble in the artificial intelligence sector, investors have shifted towards liquidating riskier assets. Consequently, Bitcoin is no longer seen as an "alternative currency" but behaves like highly volatile tech stocks, reacting to Federal Reserve statements and fluctuations in the Nasdaq.

The decline is not limited to Bitcoin alone; observers have noted that Ether has lost 40% of its value since its peak in August, while Solana and BNB have seen severe declines ranging from 30% to 35%. Dogecoin, known for its volatility, has lost more than half of its value over the past 11 months, while XRP has completely erased its gains for the year. In most of these cryptocurrencies, a similar cycle is repeating: a summer rise, a fall peak in autumn, followed by a sharp decline amid market turbulence.

Financial experts conclude that the current market conditions confirm that major markets, which have thrived on liquidity and speculation, are now facing a harsher reality, where they are not shielded by narratives of "financial revolution" but are swept up in the same wave of concern affecting the riskiest stocks on Wall Street.