Cryptocurrency Prices are Falling

Cryptocurrencies have tumbled sharply from their highs in the third quarter of 2025, with Bitcoin—the largest and most widely held digital asset—losing more than 45% of its value. Deleveraging has been the primary driver of the market’s latest downturn, as investors who borrowed against crypto holdings have been forced to unwind positions to reduce leveraged exposure.

Some analysts warn that the selloff could spill over into the metals market, as a growing number of crypto focused ETFs and similar investment vehicles have accumulated gold and silver as volatility hedges. When deleveraging accelerates, those metal holdings may also be liquidated to cover borrowed positions, adding pressure to precious metal prices.

Cryptocurrencies have increasingly behaved like speculative assets rather than hedges against equity market volatility or credible alternative investments. Recent geopolitical tensions—including the threat of broader global conflict and a weakening U.S. dollar—are viewed as contributing factors behind the sector’s decline.

(Sources: Federal Reserve Bank of St. Louis, Bloomberg)

- Tony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management