Key Insights
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The narrative of “Bitcoin dropping to $0” is gaining traction once more.
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Market sentiment has decisively shifted towards bearishness.
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Credibility among bullish advocates is diminishing.
“Whenever I ask a Bitcoin enthusiast to justify its long-term value, I leave more convinced that Bitcoin could hit a floor price of zero.”
This statement from Buck Sexton, a well-known American talk show host, has taken social media by storm as Bitcoin has plummeted by over 20% in the past week. Sexton’s remarks are part of a narrative that has resurfaced strongly during the ongoing market downturn.
Critics of Bitcoin have long asserted that its value hinges on the next buyer’s willingness to pay more than the previous one, suggesting that during a genuine crisis of confidence, there’s no inherent value. This line of reasoning supports the zero-dollar hypothesis.
The difference now is that this idea has emerged from a niche group of gold proponents and skeptics, gaining traction among media personalities and previously optimistic investors during a time of heightened fear in the cryptocurrency market.
Why has the belief that Bitcoin could eventually be worthless gained so much attention? Historical critiques have escalated recently, encouraging both long-time skeptics and those not typically involved in cryptocurrency.
Richard Farr, a chief market strategist at Pivotus Partners, recently asserted that his firm’s target price for Bitcoin is “$0.0.” He contended that Bitcoin has failed as a hedge against the dollar, remains closely tied to Nasdaq fluctuations, and hasn’t successfully established itself as a viable medium of exchange.
“The miners are losing money,” Farr stated, concluding, “We believe it’s on a path to zero.”
Peter Schiff, a prominent Bitcoin critic, posited that gold’s value is grounded in physical utility, while Bitcoin’s worth is merely a matter of belief. He noted limited practical use except for storage and transfer, echoing concerns raised by others about Bitcoin’s functionality and role in the larger economy.
“Bitcoin is ineffective. You can store and transfer it, but beyond that, it serves little purpose,” Schiff emphasized.
Buck Sexton further indicated that the backlash he receives from Bitcoin supporters illustrates a deeper issue. He argued that if the long-term potential for Bitcoin is as robust as advocates claim, then price drops should be seen as buying opportunities.
Nevertheless, traders counter this narrative by explaining that Bitcoin’s investor base is not a uniform group of patient believers. By 2026, many buyers will consist of institutional investors engaged in ETFs and leveraged positions, indicating that sharp declines can lead to panic selling rather than opportunistic buying.
Increasingly negative sentiment regarding Bitcoin and Ethereum was reflected by blockchain analysis firm Santiment, which noted a marked downturn in market outlook over the past week. The Crypto Fear & Greed Index dropped significantly, signaling heightened anxiety among investors.
Despite the rising discourse surrounding Bitcoin’s potential collapse, many believe its long-term premise remains intact, particularly among institutional investors and large asset managers. ARK Invest forecasted a substantial increase in the cryptocurrency market, projecting Bitcoin to represent a considerable portion of it.
ARK’s CEO, Cathie Wood, also suggested that improving macroeconomic conditions could bolster Bitcoin and other risk assets. She referenced a “rolling recession” that has mitigated the chance of a more severe downturn and highlighted potential positive factors like tax incentives and easing inflation.
Even as discussions of Bitcoin dropping to zero flourish, many market observers deem a complete collapse highly unlikely. The presence of major institutional players in the Bitcoin space means a fall to zero would necessitate a full breakdown in custody and legal confidence, far exceeding a mere market crash.
