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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid heightened volatility in digital assets, macro analyst Alex Krüger has declared crypto a 'failed asset class' as the price of Bitcoin slides toward the $65,000 level. Krüger's critique highlights a growing skepticism within the analyst community, though he identified four specific exceptions within the crypto space that he still considers worth owning despite the broader negative outlook. This assessment comes as the market struggles to find a firm bottom following recent local highs.
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Sign InThe comments coincide with record outflows from Bitcoin ETFs and significant liquidations of leveraged positions, which have stripped momentum from the leading cryptocurrency. In contrast to traditional assets, market data shows that gold and major U.S. equity indices have maintained relative stability, bolstering the argument against crypto's role as a reliable inflation hedge. Per market data, the selling pressure has permeated the entire sector, with most major altcoins experiencing double-digit percentage declines.
Looking ahead, BTC is currently testing critical support levels, with traders closely watching the $65,000 mark as a pivotal psychological and technical zone. On the macro front, investors are awaiting the U.S. Core PCE Price Index release on May 28, 2026, a key catalyst for Federal Reserve interest rate expectations. A higher-than-anticipated inflation reading could further dampen sentiment for risk-on assets like Bitcoin in the near term.
Update: Veteran trader Peter Brandt has added to the bearish chorus, warning that Bitcoin could face a 'terminal wash-out' price action phase. This technical perspective reinforces concerns that current support levels may fail if the intense selling pressure persists.
Update: Prominent gold advocate Peter Schiff has joined the skeptics, renewing his criticism of MicroStrategy's Bitcoin treasury strategy. Schiff predicted an eventual crash for the cryptocurrency, questioning the long-term legality and viability of corporate strategies that rely heavily on volatile digital assets.
Update: Offering a counter-perspective, analyst Raoul Pal highlighted that Bitcoin has surged 318% since the FTX collapse, vastly outperforming the Nasdaq index. These figures support the argument that crypto remains a high-growth asset class despite its characteristic volatility.
Update: Economist Peter Schiff has intensified the bearish outlook, warning that a break below $50,000 could lead to a rapid decline toward the $20,000 mark. Schiff noted that excessive complacency among current investors suggests the market has yet to reach a definitive bottom.