Bitcoin Faces Identity Crisis as It Approaches $1 Trillion Valuation

Bitcoin has fallen more than 40% from its peak, but the bigger issue isn't the price — it's its purpose.
Once driven by compelling stories, Bitcoin now faces competition on all fronts: gold as a hedge, stablecoins for payments, and prediction markets for speculation. Even with increasing support from Wall Street and policymakers, demand remains weak.
Analysts believe the core story of Bitcoin — rising prices — has collapsed, and unlike stocks or commodities, it lacks clear fundamentals to rely on.
Meanwhile, its "digital gold" claim is under pressure as precious metals rally and Bitcoin ETF funds see outflows. New cryptocurrency use cases, such as tokenization and stablecoins, are also shifting attention.
Nevertheless, Bitcoin remains the most solidly established cryptocurrency asset and has weathered past crises. The key question now: can it redefine its role, or will it gradually lose significance?