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Bitcoin Updates: ECB Advocates for Digital Euro While Bitcoin's Decline Faces Regulatory Barriers

Bitcoin Updates: ECB Advocates for Digital Euro While Bitcoin's Decline Faces Regulatory Barriers

Bitget-RWA2025/11/23 01:08
By:Bitget-RWA

- ECB President Lagarde reaffirmed Bitcoin's "worth nothing" stance, rejecting its inclusion in central bank reserves due to safety and regulatory risks. - Bitcoin fell below $90,000 (32% from October 2025 peak), mirroring April 2025's correction amid U.S. rate uncertainty and large holder sell-offs. - ECB prioritizes digital euro development, aiming for 2027 pilot and 2029 launch to enhance privacy and reduce reliance on foreign payment systems. - Despite short-term Bitcoin rebound (3.64% in 24 hours), an

European Central Bank President Christine Lagarde has once again voiced her persistent doubts about

during a recent podcast appearance, declaring that the digital currency is still "worth nothing" despite its recent price swings. Her statement followed Bitcoin's drop below $90,000 for the first time in several months, wiping out 32% of its value since reaching a high of $126,250 in October 2025 . Lagarde, speaking on October 5, 2025, reiterated her 2022 view that cryptocurrencies are "highly speculative," and stressed that the ECB will not include Bitcoin in its reserves because it fails to meet standards for "safety, liquidity and regulatory compliance" .

The current downturn in Bitcoin's price is reminiscent of the correction in April 2025, when its value slid from $109,000 to $76,000 over an 80-day period. As of November 18, 2025, Bitcoin had fallen below the 2025 "realized price" of $103,227—the average acquisition cost for that year—leaving the typical 2025 investor facing a 13% loss

. Although this correction has lasted just 43 days as of November 18, analysts attribute the decline to uncertainty over U.S. interest rate policy, weak stock market sentiment, and large investors reducing their holdings .

Bitcoin Updates: ECB Advocates for Digital Euro While Bitcoin's Decline Faces Regulatory Barriers image 0
The ECB continues to prioritize its digital euro project, which aims to introduce a sovereign digital currency to supplement physical cash. In a speech delivered in November 2025, ECB Executive Board member Piero Cipollone emphasized that the digital euro would "bring the advantages of cash to digital payments," supporting privacy, accessibility, and less reliance on non-European payment providers . The initiative has now entered a new technical stage, with a pilot program targeted for mid-2027 and a possible rollout in 2029, pending legislative approval .

In the meantime, Bitcoin's price has shown mixed performance. After briefly falling below $89,000 on November 18, the cryptocurrency rebounded to $92,600 by November 19, regaining about 3.64%

. Other leading digital assets also saw gains, with rising 5.52% and climbing 6.80% during the same timeframe . Nevertheless, market experts warn that technical signals, such as the downward trend in the 200-day moving average, indicate continued market pressure .

Lagarde's perspective is in line with a wider regulatory caution regarding cryptocurrencies that lack backing, even as international debates about Bitcoin's place in government reserves persist. In contrast, the ECB's digital euro is intended to work alongside existing banking systems, supporting the business models of financial institutions while providing a secure and affordable digital payment method for both consumers and merchants

.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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