Bitcoin’s Declining Value and Experts’ Concerns
The price of Bitcoin, the leading cryptocurrency, continues its downward trend, and experts caution that it should not be considered a safe-haven asset comparable to gold, at least for now.
- Bitcoin dropped 2.17% on Tuesday, trading at $66,028.40, marking its third consecutive day of losses and accumulating a 4.28% decline.
- Since its historical peak of $126,186 in early October 2025, Bitcoin has retreated by 46.45% in value.
- In 2026, Bitcoin has lost 24.64%, while other safe-haven assets like gold and silver have gained 17.38% and 18.25%, respectively.
Factors Weighing on Bitcoin’s Performance
Several factors have contributed to Bitcoin’s downfall, including institutional and ETF sales reflecting a waning demand from institutions. Additionally, geopolitical uncertainty and volatility in traditional markets (stocks, gold, and silver) have pushed investors towards safer assets, moving away from cryptocurrencies.
The Federal Reserve’s decision to maintain high-interest rates and postpone cuts has also reduced liquidity available for riskier assets.
Experts’ Perspectives on Bitcoin’s Future
Octavio Pozos, CEO of Blue Whale Markets:
“There is a popular narrative that defines Bitcoin as digital gold, but today this claim is a fallacy. Bitcoin remains a speculative asset; perhaps in the future, it may consolidate as a safe-haven asset, but for now, it is not.”
Pozos added that Bitcoin might experience further drops to ranges between $30,000 and $40,000 in 2026 due to reduced liquidity and financial market uncertainty.
Zach Pandl, Grayscale analyst:
“If Bitcoin were to be the digital gold, it has been increasingly weak in recent months. Instead of acting as a safe haven, it has plummeted from its peaks and moved in tandem with risk assets as investors have become defensive.”
Pandl asserted that until Bitcoin is widely accepted as a global monetary asset, its price will likely remain sensitive to risk appetite, rising and falling alongside growth-oriented portfolios rather than acting as a safe haven during market stress periods.
Decline in Other Cryptocurrencies
Other cryptocurrencies also show losses for the year:
- Solana (-35.92%) at $79.93
- Ethereum (-34.04%) at $1,959.1
- Litecoin (-31.53%) at $52.56
Additionally, BNB (-29.36%), XRP (-25.26%), Cardano (-26.45%), and Dogecoin (-22.01%) are also experiencing declines.
