Ex-Jack Dorsey associate Mike Brock has warned investors of an imminent Bitcoin crash, predicting a global financial crisis to become the primary trigger. While Bitcoin has weathered a torrid run in the last quarter of the year, investors are bracing for a strong rally to close 2025.
Mike Brock Says Global Financial Crisis Will Crush Bitcoin
Former TBD CEO Mike Brock has predicted grim prices for the largest cryptocurrency in the event of a global financial crisis. According to the former tech executive, Bitcoin prices will not survive a sovereign debt crisis despite its branding as a hedge or safe-haven asset.
In an X post, Brock took swipes at the claim that Bitcoin will rally during a global financial meltdown, arguing that prices will tumble to steep lows. He criticized the position of Bitcoin maximalists for failing to see the signs of a correlation to mainstream markets.
“Bitcoin holders think that the price is going to rip if we have a financial crisis or a sovereign debt crisis,” said Brock. “In reality, Bitcoin is going to dump when that happens.”
While Bitcoin has earned the tag as a crisis hedge, the asset has shown a correlation with stocks and traditional markets, crashing during periods of panic. Already, several analysts like Robert Kiyosaki have predicted the imminent start of a global financial crisis, pointing to excessive money printing by central banks.
‘The Big Short’ investor Michael Burry has also warned of a prolonged market-wide selloff, significantly worse than the meltdown of 2020 that exceeded 30 months. Burry poked holes at Bitcoin, describing the asset as “not worth anything,” pitching his tent with gold and precious metals.
“The high priests of bitcoin, in their religious fervor, have convinced themselves the opposite is true,” added Brock.
While the former Block team lead forecasts a torrid patch for BTC, other sector players argue that the decline will only be temporary. One analyst argued that the “massive pullback” will be a “net positive for long-term bullish bitcoiners.”
Bitcoin attempts a recovery
After suffering a pummeling that sent prices tumbling by nearly 30% from its all-time high of over $126K to $80K, BTC is flashing signs of a recovery. The premier cryptocurrency has inched toward $92,000 on the back of several positives, including renewed ETF inflows during the week.
Furthermore, the rising odds of an imminent rate cut by the US Federal Reserve and the end of quantitative tightening have added macroeconomic steam to Bitcoin’s resurgence. Altcoins are latching onto Bitcoin’s upswing to post impressive figures, with the global cryptocurrency market capitalization sitting at $3.14 trillion.
Source: https://zycrypto.com/jack-dorseys-former-right-hand-man-warns-bitcoin-will-crash-in-next-financial-crisis/
