Bitcoin Going To Zero, Says Economist Who Predicted 2008 Crash -- Does His Reasoning Have Merit?

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Bitcoin Going To Zero, Says Economist Who Predicted 2008 Crash -- Does His Reasoning Have Merit?

crypto :: 8hrs ago :: source - ccn

Key Takeaways

Famed analyst Steve Keen has warned that Bitcoin’s price could go to zero.
While bearish voices like Mike McGlone and Peter Schiff warn of a sharp downside.
Bitcoin is currently trading above $70,000 on institutional inflows and macro tailwinds.

Bitcoin faces renewed scrutiny after economist Steve Keen, known for warning ahead of the 2008 financial crisis, said it could ultimately become worthless and go to zero.

His comments come as Bitcoin trades above $70,000, buoyed by strong institutional inflows and geopolitical developments, even as other prominent market commentators warn of a sharp reversal.

Bitcoin Price To Nothing?

Speaking on the Diary of a CEO podcast released April 6, Keen argued that Bitcoin’s core design — particularly its energy-intensive proof-of-work system — makes it vulnerable in a world increasingly focused on reducing energy consumption.

“The reason I didn’t [buy Bitcoin] is they explained that the way that the public ledger is kept safe is that it takes too much energy to break it,” Keen said.
“That means it’s got a huge requirement for energy use.”

Keen said that as climate concerns intensify, policymakers may be forced to cut back on high-energy activities, singling out cryptocurrencies as an easy target.

“At some point we’re going to realise we’re using far too much energy… and the two easiest things to cut out… are cryptocurrencies and international travel,” he said.

His argument highlights the long-standing criticism of Bitcoin that its security model, while robust, depends on vast amounts of electricity.

However, proponents counter that Bitcoin mining is increasingly powered by renewable energy and that its energy usage underpins a decentralised financial system resistant to censorship.

Bearish Voices Echo Downside Risks

Keen is not alone in warning of a potential sharp downturn.

Mike McGlone, Bloomberg Intelligence’s senior commodity strategist, has again reiterated his view that Bitcoin could fall to $10,000.

However, he acknowledged the asset could “prove him wrong” if it sustains levels above $75,000.

McGlone said rising volatility in traditional commodities such as gold and crude oil could spill into equities and risk assets, including cryptocurrencies.

“When beta falls, the tide goes out for all risk assets,” he said, describing crypto as among the most vulnerable due to what he called a lack of underlying fundamentals.

Veteran Bitcoin critic Peter Schiff has also continued to warn of “significant” downside risk for the crypto.

“If Bitcoin ends 2026 at $10,000… a 92% decline will make it the worst-performing investment for most holders,” Schiff wrote on X.

He added that recent price rallies faced heavy resistance and limited upside compared with gold.

Additional scepticism has come from other economists and investors.

Economist Steve Hanke reiterated his long-standing view in December that Bitcoin has “zero fundamental value,” describing it as a purely speculative asset — a position he said has remained unchanged “since day one.”

Investor Michael Burry also weighed in, calling Bitcoin’s rise toward six-figure levels a speculative mania.

He described the idea of Bitcoin reaching $100,000 as “ridiculous,” arguing that enthusiasm around the asset had gone “too far.”

Historical Bitcoin Price Bear Calls

Schiff’s latest remarks are part of a long pattern of bearish declarations on Bitcoin, highlighting the persistent divide between critics.

According to data compiled by bitcoindeaths.com, Schiff has made at least 22 public statements declaring Bitcoin “dead” since 2011 — more than any other tracked critic.

Despite these repeated predictions, Bitcoin has risen more than 4,000-fold since Schiff’s initial criticism.

Bitcoin death calls are growing | Source: bitcoindeaths.com

Other prominent sceptics have also issued multiple bearish calls.

Economist Steve Hanke has made 10 such declarations, while investor Warren Buffett has made eight, according to the same data.

Elsewhere in the leaderboard, Jamie Dimon has made 7 Bitcoin death calls, while Brett Arends and John Crudele have both made four such calls.

Bitcoin Rallies Above $70,000

Despite bearish predictions, Bitcoin has rallied in recent days, rising above $70,000 after U.S. President Donald Trump announced a two-week ceasefire with Iran.

The crypto reached an intraday high of $72,738 before settling near $71,900, supported by renewed institutional demand.

U.S. spot Bitcoin exchange-traded funds recorded $471 million in net inflows on April 6, the strongest in six weeks, helping drive prices higher.

A wave of short liquidations in derivatives markets further amplified gains.

Analysis from CoinMarketCap said the move reflects Bitcoin’s increasing sensitivity to macroeconomic and geopolitical developments, as well as its growing integration into traditional financial markets.

Bitcoin Bullish Predictions Remain

Bullish projections for Bitcoin remain firmly in place, with some researchers arguing the crypto could still be on track for a dramatic long-term surge.

A recent peer-reviewed study published in the Journal of Risk and Financial Management outlined a scenario where Bitcoin’s price could be pushed toward $1 million within the next few years.

The analysis centres on Bitcoin’s capped supply of 21 million coins, which does not expand in response to higher prices — a feature researchers say could amplify price gains as demand increases.

As more Bitcoin is moved into long-term storage, the amount available for trading continues to shrink, tightening market liquidity.

According to the study, sustained daily withdrawals of more than 1,000 Bitcoin could begin to constrain supply, while flows between 2,000 and 3,000 coins may trigger a more severe squeeze.

In its most optimistic scenario, the model projects Bitcoin reaching $1 million by early 2027, rising to $2 million later that year and potentially climbing as high as $5 million by 2031.

The study also used Monte Carlo simulations to assess a range of outcomes, finding that under strong adoption conditions there is a high probability Bitcoin could exceed multi-million dollar levels over the longer term.

However, the projections remain highly sensitive to assumptions around continued demand growth, underscoring the uncertainty surrounding long-term price forecasts.

Strategy Executive Chairman Michael Saylor has also challenged Schiff’s framing on his most recent Bitcoin fall call.

“Timeframes matter,” Saylor said. “Since August 2020, Bitcoin is the top-performing major asset and it’s not even close. Zoom out further and the gap only widens.”

Analysts Warn Downside Risks Remain

Still, some market watchers caution that Bitcoin’s rally may be fragile.

According to CCN analyst Abiodun Oladokun, the crypto remains below a key resistance level near $72,766. Failure to break decisively above this threshold could leave prices vulnerable.

BTC/USDT Daily Chart | Credit: TradingView

“If sentiment worsens… BTC may shed some of its current gains,” he wrote, with potential downside targets at $65,071 and as low as $60,000 if support levels break.

Near-term direction is likely to hinge on U.S. inflation data and whether institutional demand remains strong enough to sustain momentum.

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This post first appeared on ccn.com.