Market News

Richard Farr, chief market strategist and partner at Pivotus Partners, has issued a stark prediction for Bitcoin (BTC-USD), setting a price target of zero for the cryptocurrency.

“Our BTC price target is 0.0. That’s not just for shock factor. It’s where the math takes us,” the strategist said, noting that Bitcoin (BTC-USD) has failed to function as a dollar hedge and instead operates as “a speculative instrument correlated to the Nasdaq.”

According to Farr, the cryptocurrency faces insurmountable obstacles in gaining institutional adoption or serving as a legitimate medium of exchange.

“No serious central bank will ever own something where Michael Saylor controls the float,” he said on X, referring to the Strategy (MSTR) executive who has accumulated massive bitcoin holdings.

The strategist also criticized Bitcoin’s environmental impact, stating that miners “are bleeding cash” while the network remains “horribly inefficient as a transaction processor and wastes tremendous amounts of energy.”

Farr’s assessment aligns with warnings from Michael Burry, the investor known for predicting the 2008 financial crisis, who cautioned that falling Bitcoin (BTC-USD) prices could trigger a self-reinforcing “death spiral.”

Burry noted that Bitcoin, down more than 40% from its October peak, is now “exposed as a completely speculative asset” that does not qualify as a debasement hedge like gold (XAUUSD:CUR) or silver (XAGUSD:CUR). “Sickening scenarios have now come within reach,” the investor wrote in a Substack post.

The speculative nature of Bitcoin (BTC-USD) has been amplified by its correlation with traditional markets, according to Burry, who noted that BTC’s correlation with the S&P 500 (SP500) has reached 0.50.

He warned that if prices fall another 10%, Strategy (MSTR) would be billions in the red and could “find capital markets essentially closed.”

Spot ETFs, he added, “have only boosted Bitcoin’s speculative nature” while increasing the token’s ties to stock market movements.

Should Bitcoin (BTC-USD) decline to $50,000, the consequences could be catastrophic for the broader ecosystem, according to market experts. Burry warned that miners could go bankrupt while “tokenized metals futures would collapse into a black hole with no buyer,” as corporations de-risk by liquidating profitable positions.

The investor noted that up to $1B in precious metals was already liquidated at month’s end due to falling crypto prices, illustrating the interconnected risks facing digital asset markets.

In addition, about $1T in market cap has been wiped from Bitcoin (BTC-USD) in just three weeks, as the crypto hovers around the $67,300 mark.