Jeremy Grantham, the veteran value investor and co-founder of GMO, has issued a stark warning on Bitcoin. Rather than a sudden crash, he envisions a gradual erosion of interest over several years. Grantham argues Bitcoin has no intrinsic value and has failed to deliver the consistent strong performance its supporters claim.
Grantham stated he believes Bitcoin will quietly fade from the spotlight, not through a dramatic crash but a slow, prolonged unraveling over many years.
The investor also pushed back against Bitcoin as a store of value, noting its ability to halve in a robust economy for no apparent reason. Compared to gold, he said Bitcoin hasn't achieved mainstream everyday use; people rarely turn to it for major transactions or daily payments, undermining its utility as a medium of exchange.
$59,000 Support Tested for Third Time
Meanwhile, Katie Stockton, founder of Fairlead Strategies, highlighted the $59,000 region as a critical support that has held for months and may have just been tested for a third time. Bitcoin recently dipped to $58,000 before bouncing to $59,835. Stockton warned that a decisive break below $59,000 could open the door to the low $40,000 range as the next major support.
According to Stockton, Bitcoin has fallen roughly 30% after failing to clear its 200-day moving average, which continues to act as strong resistance. The overall trend remains downward, and some analysts are now discussing the risk of a deeper pullback.
Long-Term Signs of Stabilization Emerge, But Cycle Theory Questioned
Despite near-term weakness, Stockton observed that certain long-term chart signals now suggest stabilization could be forming. The current trading range lines up with a key Fibonacci retracement level; a clear break below it could open room for further losses. The $60,000 mark is also under close watch.
Bitcoin currently trades roughly 60% below its all-time high. In prior downturns, losses extended to 75%–80%. Stockton acknowledged the possibility of a similar large drop but also pointed out that current volatility may offer trading opportunities for those reading trends correctly. She emphasized she is looking for stability signs at this stage, with $59,000 and $60,000 levels crucial for direction. Stockton also cautioned against relying too much on the four-year cycle theory, citing insufficient historical evidence.