Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin is undergoing a ‘crisis of faith’ following a decline of over 40% from its all-time high and a reduction in market capitalization of approximately $1 trillion, as reported by analysts surveyed by Bloomberg. They assess that the market lacks new catalysts for growth.
Experts point out that Bitcoin is facing increasing competition from alternative assets. Gold is strengthening its position as a safe-haven asset, stablecoins are dominating in payments, and prediction markets, including Polymarket, are attracting speculative capital. Analyst Noelle Acheson remarked:
“New speculative platforms, such as prediction markets and commodity exchanges, are diverting attention from the crypto market. Now that BTC has become a macro asset, it must compete with numerous alternatives, most of which are easier to explain to fiduciaries, clients, and boards of directors.”
Related Posts
Despite political instability and a weakening dollar, gold and silver are showing gains this year, while cryptocurrencies are declining. Over the past three months, gold-focused exchange-traded funds (ETFs) have seen inflows exceeding $16 billion, whereas investors have withdrawn about $3.3 billion from spot Bitcoin ETFs, Bloomberg notes. Tom Essaye, president and founder of Sevens Report, stated:
“People are beginning to realize that Bitcoin is what it has always been—a speculative asset. Bitcoin does not replace gold. It is not an inflation hedge—honestly, there are other, more effective hedges where volatility is not a concern.”
Analysts also caution about the risk of conceptual dilution regarding Bitcoin’s role. The asset is simultaneously positioned as a store of value, a speculative instrument, a technological platform, and a political symbol, complicating its perception in the market.
When an asset attempts to serve as both a store of value and a speculative tool while also being a technological platform, its market positioning becomes blurred. This may diminish investor interest and gradually reduce its significance.
An additional indicator of sentiment has been a surge in search queries for “Bitcoin will drop to zero” on Google Trends: the metric reached a peak value of 100 points.
