Bitcoin’s Freefall Sparks Debate as Critics Declare “The End is Near” for Crypto

The cryptocurrency market has plunged into a full-blown panic as bitcoin’s multi-month downturn accelerated last week, leaving bulls desperately searching for any glimmer of hope that might signal a bottom to this brutal bear market. From technical chart patterns to rumors about leveraged hedge funds blowing up, crypto enthusiasts have been clutching at straws in their quest to find the elusive floor beneath the collapsing digital asset.

But perhaps the most telling sign that we might be nearing a bottom isn’t coming from the bulls at all—it’s coming from the faithful bears who have been predicting bitcoin’s demise since its inception. These crypto skeptics, who have watched bitcoin’s price journey from $0 to over $100,000 during its 16-year lifespan, are now practically dancing on the grave of the world’s first cryptocurrency.

The Financial Times, long considered the gold standard among traditional publications for its unwavering opposition to bitcoin and the broader crypto ecosystem, has once again taken center stage in the crypto obituary department. The London-based paper’s team of exceptionally talented journalists has maintained a consistently bearish stance throughout bitcoin’s entire existence, never once wavering from their “no-coiner” position.

The FT’s Jemima Kelly delivered what might be the ultimate bottom signal with her Sunday essay headlined “Bitcoin is still about $69,000 too high.” The piece perfectly encapsulated the publication’s decade-plus-long skepticism toward the digital asset. In a delightful twist of irony, the FT later updated the headline to “$70,000 too high” after bitcoin experienced an overnight price surge, proving once again that even the most ardent critics can’t escape the volatility they love to hate.

Kelly’s analysis was characteristically brutal: “Ever since its creation, bitcoin has been on a journey that will end, splattered on the ground.” She argued that the supply of “greater fools” that bitcoin relies on is drying up, and that the fairy tales keeping crypto afloat are finally being exposed for what they are. “People are beginning to wake up to the fact that there is no floor in the value of something based on nothing more than thin air,” she concluded, delivering the kind of dismissive rhetoric that has become the FT’s trademark in crypto coverage.

The timing of Kelly’s piece couldn’t have been more perfect, coming just as bitcoin’s price dipped below the $76,000 average cost basis of Strategy (formerly MicroStrategy), the bitcoin treasury giant that has become synonymous with corporate crypto adoption. Craig Coben of the FT followed up with his own scathing assessment titled “Strategy’s long road to nowhere,” declaring that the company’s management has “no safe choices—only different paths to destroying shareholder value.”

Coben’s analysis painted a grim picture of Strategy’s future, noting that the company’s stock had already plummeted about 80% from its record high in late 2024. “It is hard to see the case for buying into a vehicle that has merely broken even on its investments over five years,” he wrote, comparing the company to “a gigantic mastodon stuck in La Brea tar pits, flailing for a way out.”

The crypto bear camp received another boost from Peter Schiff, the longtime gold advocate and bitcoin critic who has made a career out of predicting the digital asset’s demise. Schiff took to social media to mock Michael Saylor’s claims about bitcoin being the world’s best-performing asset, pointing out that Strategy had invested over $54 billion in bitcoin over five years and was currently down about 3% on that investment.

“According to Michael Saylor, bitcoin is the best-performing asset in the world,” Schiff wrote on social media. “Yet Strategy invested over $54 billion in bitcoin over the past five years, and as of now the company is down about 3% on that investment. I’m sure the losses over the next five years will be much greater!”

Schiff continued his assault on bitcoin, noting that the cryptocurrency was now worth only 15 ounces of gold, down 59% from its November 2021 high. “Bitcoin is in a long-term bear market priced in gold,” he declared, seemingly oblivious to the fact that gold itself has experienced significant volatility in recent months.

The chorus of crypto skepticism extends beyond just the usual suspects. Even former hedge fund manager Hugh Hendry, known for his contrarian views, weighed in on the situation. “I refuse to pick bottoms,” Hendry once said. “Monkeys spend all their time picking bottoms.” His words serve as a reminder that trying to time the exact bottom of a market crash is often a fool’s errand.

However, the overwhelming negativity surrounding bitcoin and crypto in general might actually be a sign that a bottom is forming. As the old Wall Street saying goes, “When the last bear turns bullish, it’s time to sell.” The inverse might also be true—when even the most ardent critics are declaring victory, it could signal that the worst is over.

Adding to the bearish sentiment is the apparent cooling of interest in Tether, the world’s largest stablecoin issuer. During the crypto market’s peak late last year, reports surfaced that Tether was in talks to raise $15-$20 billion at a staggering $500 billion valuation. However, according to a recent Financial Times report, investors appear to be pushing back against that lofty valuation, with capital-raising efforts potentially scaling back to around $5 billion.

Tether CEO Paolo Ardoino pushed back against these reports, telling the FT that the original $15-$20 billion figure was a “misconception” and that the company had received plenty of interest at the $500 billion valuation. Nevertheless, the fact that investors are even questioning such a valuation speaks volumes about the current state of the crypto market.

The situation with Tether is particularly noteworthy because it highlights the growing skepticism toward the entire crypto ecosystem. If even the most established and seemingly stable crypto companies are struggling to raise capital at premium valuations, it suggests that the broader market may be in for a prolonged period of consolidation and potential further declines.

As the crypto market continues to grapple with these challenges, one thing is clear: the current downturn is testing the resolve of even the most dedicated crypto enthusiasts. The combination of falling prices, negative media coverage, and growing skepticism from traditional financial institutions is creating a perfect storm of pessimism that could signal a major inflection point for the industry.

Whether this marks the beginning of the end for bitcoin and crypto, as the bears hope, or simply another cyclical downturn in what has historically been a highly volatile asset class, remains to be seen. What is certain is that the current environment is providing plenty of ammunition for crypto’s critics while testing the patience of its supporters.

As the market continues to navigate these turbulent waters, investors would do well to remember Hendry’s advice about avoiding the temptation to pick bottoms. Instead, focusing on the long-term fundamentals of the technology and maintaining a disciplined approach to investing may prove to be the most prudent strategy in these uncertain times.

Tags:

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Viral Phrases:

“Bitcoin is still about $69,000 too high”
“The supply of ‘greater fools’ that bitcoin relies on is drying up”
“Bitcoin has been on a journey that will end, splattered on the ground”
“Strategy’s long road to nowhere”
“Like a gigantic mastodon stuck in La Brea tar pits”
“Bitcoin below $76,000, it’s now worth 15 ounces of gold”
“I refuse to pick bottoms. Monkeys spend all their time picking bottoms”
“The fairy tales that have been keeping crypto afloat are turning out to be just that”
“People are beginning to wake up to the fact that there is no floor in the value of something based on nothing more than thin air”
“Crypto rally could quickly change sentiment”

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