Bitcoin News Today: Bitcoin's Plunge Pits ECB's Skepticism Against Evolving Crypto Landscape

Bitcoin's recent slide below $90,000 has reignited debates over the asset's long-term viability, particularly as European Central Bank President Christine Lagarde clings to her controversial assessment that the cryptocurrency is "worth nothing." Since Lagarde's October 2025 remarks, Bitcoin has plummeted 32%, erasing all its 2025 gains and leaving the average investor in the red. The ECB's continued skepticism, meanwhile, contrasts with growing global interest in digital assets and stablecoins, even as regulators grapple with the risks they pose to financial stability.

Lagarde's stance remains unshaken. During a recent podcast appearance, she reiterated her 2022 warning that Bitcoin is a "highly speculative" asset with no intrinsic value, a view she described as "my very humble assessment." Her comments came as Bitcoin had just reached a record $125,000, a 257% surge from its $35,000 level at the time of her earlier remarks. The asset's subsequent 32% drop to under $87,000 has been cited by critics as vindication of her skepticism. "It may well be that it collapses as well. It's a risk," Lagarde said, echoing her earlier caution.

The current correction mirrors an earlier slump in April 2025, when Bitcoin fell from $109,000 to $76,000 over 80 days. Today's decline, while steeper in percentage terms, has lasted only 43 days so far. According to Glassnode data, the realized price-the average cost at which coins were acquired in 2025-is now $103,227, meaning the average investor is facing a 13% loss. This marks the first time since 2022 that the price has dipped below this threshold, signaling a shift in market sentiment. "Historically, dips below the realized price have often been entry points," said one analyst, though the current environment remains volatile.

Market observers are split on whether a rebound is imminent. Technical indicators suggest support near $87,000, with some analysts noting a pattern similar to the 2019 rebound following the U.S. government shutdown. Santiment data highlights an inverse correlation between retail pessimism and market moves, as fear metrics hit yearly lows. "Retail traders are predicting a fall below $70k, but history shows they're often wrong," said one market watcher. CoinPedia analysts added that a potential rebound could be fueled by Federal Reserve easing and liquidity inflows into crypto after the government shutdown.

The ECB, however, remains unmoved. Lagarde reiterated that Bitcoin will not be considered for central bank reserves due to its "incompatibility" with the ECB's standards for safety and regulatory compliance. Instead, the ECB is accelerating its digital euro project, a blockchain-based payment system aimed at reducing reliance on non-European providers. The project, slated for 2026, has drawn criticism from crypto advocates who argue that private stablecoins offer greater scalability and usability. "The ECB's approach is bureaucratic and risk-averse," said one stablecoin issuer, questioning its ability to compete with global digital assets.

Bitcoin's selloff has also highlighted broader risks in the stablecoin market. ECB policymaker Olaf Sleijpen warned that the 48% surge in U.S. stablecoin volumes in 2025 could pose systemic risks if the tokens' underlying assets-often U.S. Treasuries-were suddenly sold off. He said, urging the ECB to prepare for potential policy shifts. Meanwhile, the U.S. government's recent regulatory moves to facilitate stablecoin adoption have intensified scrutiny of their role in global finance.

As Bitcoin trades near seven-month lows, the debate over its future remains unresolved. For now, Lagarde's "nothing" thesis appears to be gaining traction, even as some analysts bet on a rebound driven by macroeconomic factors and retail buying. The ECB's digital euro, however, may offer a longer-term alternative to both Bitcoin and foreign-backed stablecoins, reshaping the landscape of digital payments in Europe.