In dollar terms, this has been a rather disappointing year for cryptocurrencies.
And it's been a tough pill to swallow, especially considering that 2025 was supposed to be bullish for cryptocurrencies from the perspective of a typical four-year cycle.
Many investors have been patiently waiting since 2022 for things to turn around.
The Bitcoin price has done well, thanks mainly to institutional buying by the likes of Microstrategy and Blackrock.
Different from previous cycles that were driven by retail investors however, the money that has been invested into Bitcoin via ETFs cannot flow easily into other cryptocurrencies.
Also, as food, rent, insurance, and electrical costs skyrocket for the average American, retail is damn near broke, and there are no stimmie checks coming that could be deposited directly into Coinbase or Binance.
Market Manipulation?
There has been a lot of speculation on X that the markets are being manipulated this year by powerful players.
When you consider that we have been getting a consistent stream of good news (the end of QT, lower interest rates, trade deals, new ETFs, etc) it makes you wonder why prices continue to fall off a cliff.
It's quite possible that the money changers are indeed manipulating the prices in order to push everyone into a state of desperation. This could be part of the plan to force everyone into accepting their solution, whether that be CBDCs, centralized stablecoins, or some other scheme.
Leveraged Traders Hit
Leveraged traders were hit the worst again. These guys bet that the good news would boost the market, but the prices tanked instead, wiping out their leveraged positions. This comes just two weeks after the greatest liquidation in event in crypto history.
Sentiment is understandably in the pits as traders and investors get pummeled over and over again, without mercy. We are definitely in the trenches at this point, just trying to survive.
Dollars vs DeFi
At times like these it's worth asking the question - are we here simply to obtain more dollars, or are we here to build an alternative to the corrupt financial system that plagues our society?
The Fed will be ending QT, as well a lowering interest rates. Meanwhile, the federal government continues to spend like a drunken sailor, pushing US national debt over the $38 trillion dollar mark.
At the end of the day, despite the carnage, prices are likely to go up, thanks to an inevitable rise in the money supply.
The Future
That said, will it really matter in ten or twenty years what the dollar value of a Bitcoin is, or any other cryptocurrency for that matter?
Will we even be using dollars to price goods and services, or will there be an AI-based centralized economy powered by draconian CBDCs?
If we keep at it, despite the negative price action, there may be parallel systems powered by decentralized cryptocurrencies that still preserve our freedoms.
Until next time...
If you found this article interesting, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on InLeo for more frequent updates.