As The Guardian has noted:
Bitcoin's price sank to $63,000 on Thursday, its lowest level in more than a year, and half its all-time peak of $126,000, reached in October 2025. A months-long dip in cryptocurrency prices has tanked shares of companies that have increasingly invested in bitcoin, exacerbating broader stock market jitters.
This is the chart:
Note the trend: that is not an adjustment. That is a crash.
My conclusions are threefold.
First, this sham asset has a long way to fall as yet: there is literally no value to it. The destination is far down the Y-axis.
Second, this is the precursor. Sometime soon, the softness in the AI tech market will turn into a rout. There is real value there, so there will be a floor to the fall, but a halving of value is also likely. That will be a vastly better outcome than Bitcoin will enjoy, and mightily painful for the world economy, nonetheless.
Third, it would be great if Trump's fortunes went the same way. He has pitched his offering to both the crypto and stock markets: when both crash, we just have to hope his bubble bursts as well.
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An article on Naked Capitalism today by Yves Smith on Bitcoin and associated companies in which Yves writes that companies “have been buying crypto, borrowing against it, then sold interests in it to investors as exchange traded funds”.
The fall in Bitcoin prices is causing financial problems.
Is this another example of unregulated secondary banking?
Yves includes a a comment by Jake Broe that ” the average cost of mining a single Bitcoin is over $90k. The share price of a Bitcoin is $67K, everyone mining Bitcoin as the moment is losing a fortune”.
A simple observation how can crypto replace money at this cost? I can’t imagine that it costs say £7 to print each single £5.00 note.
Seems to me that crypto is pure gambling and must be stopped from infecting the rest of the financial system.
Much to agree with
I have said for years that Crypto is just the latest incarnation of the Dutch Tulip bubble. The only difference is that, even when they lost a fortune, people could still eat the tulip bulbs!
On your last line, unfortunately, much of the rest of the financial system is also pure gambling.
Easy come, easy go.
Some people might have doubled, quadrupled their money, perhaps more – but it is only paper money until they realise their gains.
Others might have seen the value of their holdings halved and face huge losses. If they have borrowed to invest, that could be a disaster. And not just for them – potentially, for the lenders too.
Interestingly enough, Michael Burry (of ‘The Big Short’ fame) made a similar comments the other day.
Not the only people to see it because I’ve read that billions have recently been sold by investors. Also, the AI boom has led to the price of the NVidia chips and RAM used for ‘mining’ bitcoin to catapult upwards which means that many of the miners will most likely be making a loss right now. As bitcoin is just effectively a worthless asset which these people are speculating on, there’s a good chance they will dump what they have before the price falls any further and we know what will happen then…
Or are we seeing a classic pump and dump operation? Having pumped the price high those “in the know” take their excessive profits while the “suckers” take the hit.
The only question is whether the same medium is used for the next cash extraction wheeze or whether Bitcoin is so tainted they need to find another worthless vehicle.
You could at least plant tulips!