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Bitcoin is plunging. Hard.
François Villeroy de Galhau, the governor of the Bank of France, is sounding the alarm over bitcoin’s recent decline. The cryptocurrency has just fallen to $60,000, a drop of nearly 40% from its peak of the previous year, which exceeded $100,000. Villeroy warns against the extreme volatility impacting investors seeking stability. He emphasizes the need for caution before adopting these ultra-risky digital assets.
Not new.
In 2023, bitcoin was still climbing to historic highs. But in recent months, it’s been a descent into hell. For the governor, this is “a natural market correction, a return to economic reality.” He doesn’t mince words. The massive sales observed on Binance and Coinbase have amplified the downward trend, creating a panic spiral among holders.
And Villeroy is not entirely against cryptos. He sees potential in blockchain but remains wary of its use for speculative assets. “The technology can be interesting, but not in this giant casino context,” he says in essence. He advocates for stricter regulation to protect consumers and avoid systemic risks.
France is not alone in its concern. Other European institutions are also sounding the alarm. The European Commission is currently working on new regulations that could change the game in the coming months. Brussels is discussing, but no official statement has yet been released. The market is awaiting clarifications.
On February 5, 2026, a major holder nicknamed “the Whale” liquidated a massive portion of their bitcoins. This created a terrible shockwave. Other investors panicked and sold out of fear of further declines. On Twitter, the hashtag #BitcoinCrash exploded with over 500,000 uses in less than 24 hours. Anxiety reigns. For more details, see Binance halts new registrations in france.
Changpeng Zhao, head of Binance, calls for calm.
But traditional stock markets are not immune to the tremors. The CAC 40 fell on February 6, with some fearing contagion to classic markets. Analysts at Société Générale are closely monitoring the situation and speak of “overflow risks.” BNP Paribas has even reduced its exposure to cryptocurrencies in the face of this wild volatility.
The Financial Markets Authority launched an investigation on February 7, 2026, after complaints from investors citing potential manipulations. The AMF is working with international regulators to analyze suspicious transactions. It’s not yet clear if irregularities will be found, but the institution is not taking any chances.
Christine Lagarde has scheduled an emergency meeting at the ECB for February 10. The implications of cryptocurrencies on financial stability will be on the agenda. Bruno Le Maire, Minister of Economy, expresses his concerns at a press conference and emphasizes the importance of effective regulation. “We support innovation, but not at the expense of stability,” he says.
Villeroy de Galhau reminds that bitcoin has experienced these cycles since its creation in 2009. Several spectacular rises and falls have marked its history. “Caution remains essential for investors,” he stresses during his appearance on BFM Business on February 6, 2026. He insists that these fluctuations are no surprise to those familiar with the sector. This follows earlier reporting on Bitcoin Falls to ,000 After Fed.
Some investors see a buying opportunity despite the drop. They are betting on a future rebound of bitcoin, believing that the fundamentals remain solid. But for now, the volatility continues to scare many market players. Exchange platforms remain silent and have not officially reacted to the governor’s statements.
The Bank of France is closely monitoring the evolution of the cryptocurrency market. It collaborates with other central banks to analyze potential impacts on the global financial system. Regular meetings are held to assess emerging risks. Villeroy mentions that these discussions are crucial for anticipating potential crises.
On February 8, 2026, the Financial Stability Board convened an emergency meeting in Paris. This council brings together representatives of major central banks and financial institutions to assess the repercussions of bitcoin’s fall. No official statement has been released following this meeting. The markets are waiting for clear signals on upcoming measures.
Several American investment funds have already started drastically reducing their exposure to cryptocurrencies. BlackRock withdrew nearly $2 billion from its bitcoin ETFs this week, while Fidelity temporarily suspended new subscriptions. These institutional movements amplify the downward pressure and fuel fears of a broader sector collapse.
Small investors are paying the high price of this debacle. According to an AMF study published in January, more than 3.2 million French people hold cryptocurrencies, often without understanding the risks. Consumer associations have been multiplying alerts since the start of the decline. UFC-Que Choisir received more than 1,500 complaints in one week, mainly from individuals who invested their savings in bitcoin.
