GMO (NYSE: GMO) co-founder and Wall Street’s most famous bear, Jeremy Grantham, on Friday repeated his long-held negative view of Bitcoin, saying he expects it to slowly disappear over time instead of becoming a lasting part of the financial system. Jeremy has built a reputation by warning about major asset bubbles and has argued that Bitcoin still has no intrinsic value. He also said the OG crypto has not delivered the kind of performance supporters often point to during strong markets and questioned whether it serves any meaningful purpose outside speculation. Jeremy Grantham says Bitcoin will slowly lose relevance over the coming decades Jeremy does not believe that Bitcoin will suddenly collapse. Instead, he thinks that its interest will wane gradually over many years. “[Over] years and years, decades and decades, it will dwindle away, I suspect, not with a bang, but a whimper.” Jeremy also challenged the theory that Bitcoin is a reliable store for one’s savings. “It’s not a stable form of value. It just halved… for no particular reason in a strong economy, so you can’t depend on it in that way.” The other point he made about Bitcoin was that, compared to gold, the latter has managed to show good performance despite its pullback from the highs reached recently. He added that Bitcoin has not become a common thing in people’s lives. “People don’t use it to make serious trades, they don’t use it to buy their dinner and pay at the supermarket… What it does is allows crooks to move money around.” Katie Stockton points to key Bitcoin price levels as traders watch for stability Meanwhile, Fairlead Strategies founder Katie Stockton believes that Bitcoin’s $59,000 area had acted as an important support level for months. When asked how many times the market had tested it, Katie replied, “This is probably the third test.” Cryptopolitan had, of course, earlier reported that Bitcoin had temporarily crashed to $58,000, but has recovered to $59,835 as of press time, according to data from CoinGecko. She said a break below that area could open the door to the next major support zone in the low $40,000 range. The hosts also mentioned that some market participants were discussing even lower downside targets. Katie noted that Bitcoin had fallen about 30% after failing to move above its 200-day moving average, which acted as resistance almost perfectly. She said that resistance remains in place while the broader trend continues to point lower. Despite the weakness, Katie said one positive sign has appeared on longer-term charts. “We’re looking for stabilization.” According to her, the current trading range was at a significant Fibonacci retracement level, and if it breaks down, then there would be a deeper retracement ahead. In addition, she noted that the $60,000 level was another significant level being watched by traders. Right now, Bitcoin is trading roughly 60% below its peak. Previous bear markets have produced declines closer to 75% to 80%, although some bullish investors believe stronger institutional participation and the launch of spot Bitcoin ETFs could reduce the size of future drawdowns. Katie said she would not rule out another decline of that size. “I think we can still see those 75% to 80% drawdowns.” Nonetheless, she believes that volatility presents trading opportunities to those who are well aware of the market trends. A massive decline will always be accompanied by an equivalent rally. Furthermore, Katie noted that even though she is bullish on Bitcoin in the long run, she does not put too much value in the four-year cycle theory since the lack of historical data makes it difficult to prove her point. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
