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Crypto Market Drops 12%, Boosting Public Purchasing Power

12/19/2025

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Summary

Story summary

The cryptocurrency market declined after a year of gains, with Bitcoin peaking above $120,000 in October and falling to $88,000, 12% drop.
Dean Baker, economist, argues the decline benefits the public by increasing purchasing power, while he calls cryptocurrencies akin to counterfeit money inflating prices for housing and tickets.
Baker says $1.2 trillion crypto market-cap loss could fund a $10,000 check for U.S. households and should be welcomed by nonowners.

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Story summary

The cryptocurrency market declined after a year of gains, with Bitcoin peaking above $120,000 in October and falling to $88,000, 12% drop.
Dean Baker, economist, argues the decline benefits the public by increasing purchasing power, while he calls cryptocurrencies akin to counterfeit money inflating prices for housing and tickets.
Baker says $1.2 trillion crypto market-cap loss could fund a $10,000 check for U.S. households and should be welcomed by nonowners.