Bitcoin Updates: Bitcoin's Sharp Decline Highlights ECB Doubts Amid Changing Cryptocurrency Environment

Bitcoin’s recent drop below $90,000 has reignited discussions about its long-term prospects, especially as European Central Bank President Christine Lagarde maintains her contentious view that the cryptocurrency “has no value.” Since Lagarde made these comments in October 2025,

has fallen by 32%, wiping out all of its gains for the year and pushing the average holder into losses. The ECB’s persistent doubts stand in contrast to the rising global enthusiasm for digital currencies and stablecoins, even as regulators continue to wrestle with the potential threats they pose to financial systems.

Lagarde has not wavered in her opinion. On a recent podcast, she

that Bitcoin is “extremely speculative” and lacks any inherent value, calling this “my very humble assessment.” Her remarks came just as Bitcoin had soared to a record $125,000, marking a 257% increase from its $35,000 price when she first made her statement. The subsequent 32% decline to below $87,000 has been used by critics to support her skepticism. “It could very well collapse. That’s a risk,” Lagarde warned, reiterating her earlier concerns.

This latest downturn is reminiscent of the pullback in April 2025, when Bitcoin tumbled from $109,000 to $76,000 over an 80-day span. The current slide, though sharper in percentage terms, has lasted just 43 days so far.

, the realized price—the average price at which coins changed hands in 2025—now stands at $103,227, putting the typical investor at a 13% loss. This is the first time since 2022 that the price has dropped below this level, indicating a shift in market mood. “Historically, dips below the realized price have often been buying opportunities,” one analyst noted, though volatility remains high.

Opinions are divided among market watchers on whether a recovery is near. Technical analysis points to support around $87,000, and some experts see similarities to the 2019 bounce that followed the U.S. government shutdown. Data from Santiment reveals that retail pessimism is at its lowest in a year, showing an inverse relationship with market moves. “Retail investors are expecting a drop below $70k, but history shows their predictions are often off the mark,” one observer commented. Analysts at CoinPedia suggested that a rebound could be sparked by Federal Reserve rate cuts and increased liquidity entering crypto markets after the government shutdown.

The ECB, however, remains steadfast. Lagarde again emphasized that Bitcoin will not be included in central bank reserves, citing its “incompatibility” with the ECB’s requirements for safety and regulatory standards. Instead, the ECB is fast-tracking its digital euro initiative, a blockchain-based payment platform designed to lessen dependence on non-European providers. Set for launch in 2026, the project has faced pushback from crypto supporters who argue that private stablecoins are more scalable and user-friendly. “The ECB’s strategy is overly bureaucratic and cautious,” one stablecoin issuer remarked, doubting its ability to rival global digital currencies.

The recent Bitcoin downturn has also drawn attention to broader risks in the stablecoin sector. ECB official Olaf Sleijpen cautioned that the 48% jump in U.S. stablecoin volumes in 2025 could threaten financial stability if the assets backing these tokens—mainly U.S. Treasuries—were rapidly liquidated.

for possible policy changes. At the same time, recent U.S. regulatory efforts to encourage stablecoin use have increased scrutiny of their impact on the global financial system.

With Bitcoin hovering near its lowest level in seven months, the debate over its future is far from settled. For now, Lagarde’s “worth nothing” argument appears to be gaining ground, even as some analysts predict a turnaround driven by macroeconomic trends and renewed retail interest. The ECB’s digital euro, meanwhile, could emerge as a long-term rival to both Bitcoin and foreign-backed stablecoins, potentially transforming Europe’s digital payments landscape.