Bitcoin Will ‘Dwindle Away With A Whimper’

Legendary investor Jeremy Grantham, who co-founded asset management firm GMO and is known for his knack for spotting market bubbles, once again criticized Bitcoin on Friday. During an appearance on CNBC’s Squawk Box, Grantham referred to Bitcoin as a “useless, speculative mechanism” that is destined for a gradual decline into irrelevance.

Grantham expressed his belief that Bitcoin will slowly fade away over time, stating, “dwindle away, I suspect — not with a bang, but a whimper.” He emphasized that he has never owned Bitcoin and predicted that the cryptocurrency will eventually fall to zero, not through a sudden crash but through a gradual erosion of interest over the course of years and decades. According to Grantham, Bitcoin primarily serves as a tool for fraudsters to move money around.

One of Grantham’s main criticisms of Bitcoin is its instability, which he believes undermines its status as a reliable store of value. He pointed out that the cryptocurrency experienced a significant drop in value for no apparent reason during a period of economic strength. In contrast, Grantham highlighted the consistent gains that gold has delivered over the same timeframe.

The recent performance of Bitcoin has lent some credence to Grantham’s concerns. After reaching an all-time high near $126,000 in October 2025, Bitcoin has since lost over 50% of its value. As of the latest trading session, Bitcoin was hovering around the $60,000 mark, flirting with a critical support level that, if breached, could lead to further declines into the $40,000 range.

The cryptocurrency faced downward pressure in mid-June amid hawkish signals from the Federal Reserve, escalating U.S.-Iran tensions, and inflation fears. This environment prompted some institutional investors to pull money out of U.S. spot Bitcoin ETFs, resulting in net outflows totaling approximately $113.8 million over four consecutive days.

Bitcoin’s attempt at a recovery was met with resistance at its 200-day moving average, triggering a sharp decline of around 30% from its recent peak. This drawdown ranks among the fifth worst in Bitcoin’s history, testing the resolve of long-term holders. Despite the sell-off, institutional buyers saw an opportunity to enter the market, with major institutions reportedly buying the dip, according to Coinbase.

On the other hand, Mexican billionaire Ricardo Salinas Pliego has taken a bullish stance on Bitcoin, allocating 70% of his investment portfolio to the cryptocurrency, up from just 10% in 2020. Pliego’s conviction in Bitcoin stems from his distrust of fiat currencies, which he attributes to discussions he had with his family about Nixon ending the gold standard. He views Bitcoin as superior to cash and gold due to its unseizability and borderless nature.

Pliego’s faith in Bitcoin has withstood challenges such as a $150 million loan scam and regulatory obstacles in his efforts to make Banco Azteca Mexico’s first Bitcoin-accepting bank. He pointed to the decade-long price appreciation of London property as evidence of his belief in Bitcoin’s potential, urging ordinary investors to consider converting their home equity into Bitcoin for what he deems as an “asymmetrical bet to the upside.”