Jeremy Grantham, the GMO co-founder who correctly predicted both the 2000 dot-com crash and the 2008 housing collapse, has delivered updated criticism of Bitcoin. Speaking on CNBC's Squawk Box, Grantham stated that 'It will dwindle away, I suspect — not with a bang, but a whimper.' The veteran strategist's latest analysis suggests Bitcoin will gradually become irrelevant over the coming years and decades rather than experiencing a sudden collapse. This represents a shift from his previous prediction of Bitcoin dwindling over the next few decades. As per ChainCatcher report, Grantham emphasized that 'It will die slowly, not with a bang, but with a whisper.' He has never owned Bitcoin and believes it will fall to zero, not through a sudden crash but through a gradual erosion of interest over years and decades. Grantham's latest comments come as Bitcoin faces severe challenges, with the cryptocurrency down more than 50% from its October 2025 peak near $126,000 and currently trading in the $60,000 range, testing what analysts consider a critical support zone that could open a path to the $40,000s.
Grantham's analysis centers on three core problems with Bitcoin. He argued that Bitcoin pays no yield, holds no stable value, and fails as a usable currency in daily life. The most scathing criticism focused on Bitcoin's proof-of-work design, which he called 'proof of unnecessary work'. According to the latest reports, Grantham stated that 'All Bitcoin does is allow fraudsters to move money around.' He noted that Bitcoin has halved in price during strong economic conditions without any clear justification, making it unreliable as a store of value. Grantham recently pointed to a decade of London property prices as proof of his thesis — a home that cost 4,000 BTC in 2016 now costs fewer than 30 — and urged ordinary investors to convert their home equity into BTC exposure, calling it 'an asymmetrical bet to the upside.' He questioned Bitcoin's practical utility, noting that it is not widely used for everyday payments or commercial transactions, and therefore lacks broad real-world applicability.
The Bitcoin remarks come at a time when the cryptocurrency is experiencing significant technical and market challenges. Bitcoin hit an all-time high near $126,000 in October 2025 but has since shed more than 50% of its value, with the current decline representing one of the 5th worst in Bitcoin's history. As of Friday, Bitcoin traded in the $60,000 range, testing what analysts consider a critical support zone that, if broken, could open a path to the $40,000s. Bitcoin's attempt to reclaim higher ground ran straight into its 200-day moving average, which served as hard resistance and triggered a roughly 30% decline from that ceiling. The current drawdown is testing the resolve of long-term holders, while U.S. spot BTC ETFs posted four consecutive days of net outflows totaling around $113.8 million. This decline represents a substantial drop from Bitcoin's previous highs and contrasts sharply with gold's performance during the same period, where gold has delivered solid gains despite falling from its highs.
Grantham's warnings carry significant weight due to his accurate track record of market predictions. He previously flagged the dot-com bubble before 2000 and warned of the US housing collapse before 2008. His more recent AI bubble stock warning extended his bearish thesis to US equities, where he now sees potential downside of up to 70%. However, his timing has not always been precise, with his 2021 epic-bubble call on US stocks arriving early before the 2022 correction. The Bitcoin remarks align with similar skepticism from other experts, including Peter Schiff, who contends that Bitcoin holds no intrinsic value. Despite Grantham's bearish stance, there are signs of institutional interest, with Coinbase reporting that major institutions have stepped in to buy the crash. This contrasts with Mexican billionaire Ricardo Salinas Pliego, who has increased his BTC allocation to 70% from just 10% in 2020, even convincing his wife to mortgage their home to buy more, viewing Bitcoin as superior to both cash and gold because it is unseizable and borderless.
