Bitcoin's Wild Ride: A Banker's Bold Take
Christine Lagarde, the head of the European Central Bank (ECB), has long been a critic of Bitcoin. Even as the cryptocurrency's value surged, she remained vocal about her doubts.
A Risky Bet
During a recent appearance on the College Leaders in Finance podcast, Lagarde was reminded of her past comments calling Bitcoin "worth nothing." She stood by her statement, describing it as a risky bet.
- Bitcoin's Value During Comments: ~$35,000
- Bitcoin's Value During Interview: ~$125,000
Despite the massive increase, Lagarde remained unconvinced. She emphasized that Bitcoin's value could fluctuate wildly or even disappear entirely, highlighting the inherent risks.
No Investment Advice
Lagarde clarified that she wasn't offering investment advice. She believes individuals should have the freedom to invest where they choose. However, she pointed out that Bitcoin fails to meet the ECB's criteria for safety, liquidity, and regulatory compliance. Therefore, it's not something the ECB would consider for its reserves.
Market Reaction
Following Lagarde's comments, Bitcoin's value took a significant hit, dropping by 32% and erasing all gains for 2025.
ECB's Digital Euro
Meanwhile, the ECB is focused on launching its own digital currency, the digital euro, with plans to roll it out by mid-2029.
Current Bitcoin Value
At the time of writing, Bitcoin was trading at $85,486.98, down 6.78% in the last 24 hours.
Lagarde's words appear to have had an impact, adding to the volatility of Bitcoin's wild ride.
