Bitcoin's Value Plummets, Shifting Perception from Revolutionary Asset to Speculative Tool
Bitcoin has seen a significant decline, falling from a peak of $126,000 in October to under $80,000 recently. This downturn underscores a shift in its image from a "revolutionary asset" to a speculative investment heavily affected by market volatility and central bank actions.
As reported by "Le Figaro", this rapid decline occurred within weeks, following a period of optimism that arose after the election of U.S. President Donald Trump. Bitcoin had maintained values above $100,000 before a sudden drop triggered by tariff announcements.
Although volatility is characteristic of Bitcoin, the current situation mirrors the collapse of 2022, when its value fell to $15,000 after the bankruptcy of the FTX trading platform.
Financial analysts suggest that the market's perception of cryptocurrencies as indicators of risk appetite contributes significantly to this decline. With growing concerns on Wall Street about a potential bubble in the artificial intelligence sector, investors are moving away from riskier assets. Consequently, Bitcoin is now behaving more like high-volatility tech stocks, reacting to Federal Reserve announcements and fluctuations in the Nasdaq.
The downturn is not limited to Bitcoin; other cryptocurrencies have also suffered. Ether has lost 40% of its value since its peak in August, while Solana and BNB have seen declines of 30-35%. Dogecoin, known for its volatility, has lost over half its value in the past 11 months, and XRP has erased all its gains for the year. This pattern reveals a recurring cycle: a summer rise, an autumn peak, and a sharp drop amid market turmoil.
Experts conclude that the current market conditions indicate that previously buoyed markets, sustained by liquidity and speculation, are now confronting a harsher reality. They are no longer shielded by narratives of a "financial revolution" but are instead subject to the same anxieties affecting the riskiest stocks on Wall Street.
