Overview
- Jeremy Grantham reiterated his long-running view on Friday, calling bitcoin a "useless, speculative" asset that he expects to "dwindle away" over years and decades.
- Bitcoin has fallen below $60,000 and sits about 52% below its October peak, with the coin's market value near $1.2 trillion and the broader crypto market cap close to $2.06 trillion.
- Market participants pointed to hotter U.S. inflation readings, renewed fears of higher interest rates, net outflows from spot bitcoin ETFs, and a rotation of capital into AI and technology stocks as drivers of the recent weakness.
- Analysts noted that bitcoin has a pattern of deep cyclical crashes that often see losses near 70% from peaks, and some warn the current slump could persist for months without fresh buying support.
- Grantham contrasted bitcoin’s run with gold’s steady gains, and his public remarks could make institutional and retail investors more cautious about buying into the current rally or holding through further volatility.