Despite robust institutional backing and favourable policy signals, Bitcoin has delivered a sharp reality check for Wall Street’s faith in crypto.After soaring past US $126,000 in October, Bitcoin has plunged roughly US $600 billion in market value within weeks, briefly erasing its 2025 gains.
The downturn is striking not only for its size but also for its swiftness and lack of a clear trigger.
Market watchers note that despite exchange-traded funds, broad institutional flows and bullish regulatory posture, the crypto rally stalled.Bitcoin’s behaviour is increasingly being read as that of a macro asset rather than a pure digital-native play.
It is now moving in sync with liquidity shifts, dollar dynamics and policy signals, raising doubts about earlier narratives that framed the asset as detached from broader financial cycles.
Bitcoin’s roller-coaster shows that backing and hype are no substitute for resilience in a shifting macro landscape.
(Edited by : Tarkesh Jha)
