Great Bitcoin Crash of 2025 Has It Lagging Bonds, Gold and More

The anticipated Bitcoin bounce did not materialize, leaving leveraged traders in a precarious position. The cryptocurrency has seen a significant decline, falling nearly 30% from its peak earlier in 2025, raising concerns about the sustainability of high-risk investments in the crypto market.

Federal Reserve official Miran has called for the exemption of U.S. Treasuries from bank leverage rules. This proposal aims to enhance the liquidity of Treasuries, which are critical for financial stability and market functioning. The suggestion reflects ongoing discussions about regulatory frameworks affecting banks and their capital requirements.

The Abu Dhabi Investment Council significantly increased its investment in a Bitcoin exchange-traded fund, tripling its position in the third quarter. This move occurred just before a major downturn in the cryptocurrency market, which has since seen a substantial selloff.

Théau Peronnin, CEO of Nvidia's quantum partner, has indicated that quantum computers may soon possess the capability to crack Bitcoin's encryption, potentially occurring after 2030. He emphasized that the threshold for this technological advancement is approaching each year.

Investors withdrew over half a billion dollars from BlackRock Inc.'s iShares Bitcoin Trust, marking the largest single-day outflow since the fund's inception. This significant withdrawal reflects a growing lack of confidence in the digital assets market, which has been under pressure from recent declines in Bitcoin and other cryptocurrencies.

Bitcoin's recent decline underscores the increasing prevalence of high-risk investments promoted by both Wall Street and cryptocurrency firms. The cryptocurrency has fallen significantly, raising concerns about the sustainability of such speculative trading practices. This downturn reflects a broader trend of diminishing confidence in the crypto market, as investors grapple with volatility and potential losses.

Bitcoin has experienced a significant decline, falling nearly 30% from its peak in 2025, trailing behind traditional assets such as tech stocks and T-bills. Once viewed as a high-growth investment and a hedge against inflation, the cryptocurrency now risks finishing the year in negative territory without fulfilling its intended roles. Jaime Leverton, CEO of ReserveOne, discussed these developments on Bloomberg Crypto, highlighting the ongoing selloff in digital assets.

Bitcoin has rebounded after falling below $90,000, marking a seven-month low. The cryptocurrency experienced significant volatility, reflecting broader trends in the financial markets. This rebound indicates a potential recovery phase for Bitcoin, which had seen a substantial decline in recent weeks.