Crypto Collapse Shatters The Fantasy

(The original version of this article was published at Talkmarkets.com as New Lows For Bitcoin and Ripple )

Cryptocurrencies are collapsing. Just a few hours ago today (Thursday), the price of Bitcoin (BTC-USD) touched $60k, down 23% from its $78k price in my original article on TalkMarkets two days ago. The selloff in Ripple (XRP) was worse. Its price at about the same time as Bitcoin reached its latest nadir, was $1.14 – down down almost 30% from its $1.60 print on Tuesday.

At this point, the price of Bitcoin has declined by more than half (52%) since its high of $126k last August. The pronounced decline in Bitcoin’s price is more obvious and depressing (for some investors) than might be expected since there has been less volatility than was the case historically. In other words, the bounces upward are fewer and weaker.

Ripple (XRP) steals the spotlight when it comes to sensational and jawdropping performance. After leaping more than six-fold from $.55 to $3.65 in less than one year, Ripple has fallen in price by nearly 70%.

Ethereum’s decline isn’t quite as bad as Ripple, but exceeds Bitcoin’s drop by a substantial percentage. At $1750, Ethereum is down 65% from its all-time high of $4953 in August. What is not clear from these numbers is that Ethereum has held onto significantly more of its previous gains. This is because Ethereum gained 250% compared to Bitcoin’s 63% between April and August 2025. Of the three, Ethereum has not breached its 52-week low at $1386.

THE FANTASY 

Cryptocurrencies, Bitcoin in particular, have been touted as alternatives to fiat money. Some have proclaimed Bitcoin as a store of value and better than gold. Cryptocurrencies featured the advantage of transaction privacy via decentralized (and unregulated) tracking, afforded by blockchain technology. Other than that, there is not much to get excited about.

Bitcoin, and other cryptocurrencies have no fundamental value and they are certainly NOT stores of value. I have written about this several times and explained why not. If you have to ask how much Bitcoin is worth in dollars to determine its value, then you need to learn more about the difference between price and value. See (Bitcoin Has No Value and Is Bitcoin Money? Does It Have Value?)

Gold, however, is a proven store of value. (see Comparing Bitcoin To Gold)

Nevertheless, some supposedly think that a “reset” in our monetary system that includes Bitcoin, or some other cryptocurrency, or CBDCs (central bank digital currencies) will solidify and reinforce crypto investment values. It won’t. And, regulation of cryptocurrencies flies in the face of transaction privacy and decentralized tracking.

Unfortunately, the worst thing for investors would be CBDCs (central bank digital currencies). (see The Rush To Regulate Crypto)

CONCLUSION

As things are, the crypto bubble has popped. Concern about negative implications due to price destruction is heightened by the declines in silver and gold prices.

Declines in cryptocurrencies, silver, and gold prices, could be precursors to major sell-offs in the stock and bond markets as well. (Also see Silver Price Implosion)

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