Prominent economist Steve Hanke has renewed his criticism of Bitcoin (BTC) amid the cryptocurrency’s ongoing plunge.
Hanke, a professor of applied economics at Johns Hopkins University, said Bitcoin’s latest crash reflects what he described as the asset’s lack of any underlying value, according to an X post on December 16.
In his view, Bitcoin is nothing more than a highly speculative investment devoid of fundamental worth, a stance he reiterated as the digital asset traded below $86,000.
Hanke’s remarks are consistent with his long-standing scepticism toward Bitcoin, which he has maintained since its early days. He has repeatedly argued that the maiden cryptocurrency fails to qualify as a legitimate currency due to its extreme price volatility, making it unreliable for everyday transactions or as a stable store of value.
In the past, the economist has dismissed rallies in Bitcoin’s price as irrational flights into fantasy, predicting that such speculative bubbles would inevitably burst.
He has also criticised policy proposals such as a United States strategic Bitcoin reserve, labelling them misguided and counterproductive, arguing that allocating funds to the asset does little to support real economic growth, including infrastructure development or job creation.
His critiques extend to national-level adoption, including El Salvador’s decision to adopt Bitcoin as legal tender, which he has warned could destabilise economies and exacerbate inflation.
Across multiple market cycles, including rallies linked to fiscal uncertainty, Hanke has consistently characterised Bitcoin as an unproductive gamble rather than a transformative financial innovation, in contrast to supporters who view it as digital gold or an inflation hedge.
Bitcoin plunges further
These comments come amid heightened market turmoil, with Bitcoin suffering a sharp sell-off that has erased a significant portion of gains made earlier in the year. The latest downturn saw the asset slide to $85,000, at some point marking a 4% decline in a single day and extending a four-day losing streak. As of press time, BTC had made a minor recovery, trading at $87,083, down less than 1% in the past 24 hours.
The drop is part of a broader correction, with Bitcoin now down more than 30% from its all-time high of $126,000 reached in October 2025.
Market analysts attribute the sell-off to a mix of factors, including macroeconomic pressures from potential central bank interest rate changes, forced liquidations exceeding $380 million, thin holiday trading volumes, and broader concerns about a possible artificial intelligence bubble weighing on risk assets.
Warnings from the Federal Reserve have further dampened sentiment, with fears mounting over a potential $3 trillion contraction in the crypto sector if prices continue to weaken into 2026.
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