Why Such a Sharp Drop in Bitcoin's Price? Is Digital Gold Turning into Coal?

New Delhi, November 4, 2025: On November 3, Bitcoin's price recorded a drop of $4,118 (3.72%). By 4:00 PM, Bitcoin's price had fallen to around just $105,000. If this decline continues at the same rate, Bitcoin could slip below $100,000 by November 5. The question is: Why is Bitcoin's price falling so sharply? Is digital gold now turning into coal? The answer to this question lies hidden in an exclusive interview with Jamie Elkaleh and crypto analyst Ekta Maurya. Let's understand this conversation, because it could touch not just the lives of big players, but every small investor's life as well.

The Question of a Protection System for Nations' Bitcoin Holdings

When a country decides to keep Bitcoin in its treasury, the first question isn't "What to keep?" but "How to keep it?" According to Elkaleh, a sovereign state has to think about geopolitics, accountability, and multi-layered risks that a regular investor or institution might not face. In simple words, it's not like hiding a house key; it's a full plan to defend a fortress.

He explains that nations around the world are now adopting a mix of cold storage (offline maintenance), multi-sig wallets (distributing keys across multiple locations), and reliable third-party custodians. On top of that, clear audits and monitoring frameworks. For example, global custody providers are now offering "sovereign-grade" solutions that integrate blockchain security with institutional controls.

On the regulatory front, Elkaleh says it's essential to integrate Bitcoin custody into the existing financial system. The UK's supervisory approach is somewhat liberal but structured, while in the US, bodies like the SEC are subjecting crypto custody to "traditional standards."

Overall, this isn't just a game of securing private keys—it's about designing a complete model for governance, transparency, AML/KYC compliance, and long-term integrity. Institutional users demand not only cryptographic security but also board-level accountability. Indeed, it feels like a responsible step that forces us to think: No matter how fast technology races, human trust remains the foundation.

Will Nations' Bitcoin Stockpiling Change Retail Traders' Lives?

Now the question is: When governments start accumulating Bitcoin, what impact will it have on small-time retail traders? Elkaleh believes this change will be subtle but profound. Governments' move will push Bitcoin from "speculative tech" toward "infrastructure asset" or reserve thinking. The result: Deeper liquidity in the market, big players (sovereigns and institutions) walking shoulder-to-shoulder with retail, and a potential shift in the risk-return profile. Studies show that demand is now shifting from "retail speculation" to "strategic accumulation."

But Has the Classic Four-Year Halving Cycle Become Obsolete?

Elkaleh clearly states that this cycle, tied to halving events, miner economics, and market sentiment, is anchored in the network's fundamentals, which haven't changed. Yes, there might be a slight dip at all-time highs. Sovereign demand could bring a steady accumulation phase.

Benefits for Retail Traders?

Greater stability, better infrastructure, and reliable regulations that will make crypto's "Wild West" a bit more civilized. The effects of big players' movements will be felt by retail later. Therefore, risk management, quality assets, and understanding the regulatory context will always remain essential.

America's Bitcoin Reserve Plan: What to Expect in 2026?

America's case is the most intriguing, because it involves both scale and regulatory complexities. Elkaleh explains that the federal approach is still cautious. Custody laws, valuation frameworks, and agency coordination still need to be resolved. But the door isn't closed. The White House issued an executive order on March 6, 2025, which plans to establish a "Strategic Bitcoin Reserve" and "U.S. Digital Asset Stockpile."

His expectations for 2026?  

No major dramatic shift, like massive buying in one go, is likely. But pilot initiatives, state-level experiments, or government-tied institutional channels could emerge. If countries like the UK, Singapore, Hong Kong, or others in the APAC region move ahead, it will create strategic finance pressure on the US. From a compliance angle, it will depend on custody definitions, asset valuation, AML alignment, and framing Bitcoin as a hedge/diversification tool. For the broader market, the US movement will strengthen retail-institutional crossover—a step that could give a new direction to the global crypto ecosystem.

Overall, Elkaleh's conversation reminds us that technology like Bitcoin brings new responsibilities for nations. This change will come gradually, but it will be positive. If you're a retail trader, don't worry—the cycle will still turn; it will just be on a slightly stronger path.

Disclaimer: This news article is for information and education only. BhopalSamachar.com does not encourage any type of investment. Please consult your financial advisor before making any investment decision.