GMO co-founder and veteran investor Jeremy Grantham renewed his skepticism of Bitcoin during a CNBC appearance Friday, predicting the asset will gradually fade into irrelevance rather than collapse suddenly. His comments come as the crypto industry navigates a challenging market cycle that may influence hiring and workforce stability across the sector.
Market Downturn Tests Industry Fundamentals
Grantham, known for identifying financial bubbles, called Bitcoin a "useless, speculative mechanism" and predicted it will "dwindle away with a whimper" over time. He has never held the asset and pointed to its volatility as disqualifying it as a legitimate store of value.
The numbers support his timing: Bitcoin has declined over 50% from its October 2025 peak near $126,000, trading around $60,000 as of Friday. The current drawdown ranks as the fifth-worst in Bitcoin's history, driven by Federal Reserve hawkish signals and geopolitical tensions that sparked inflation concerns. U.S. spot Bitcoin ETFs recorded four consecutive days of outflows totaling approximately $113.8 million.
The selloff pushed Bitcoin into a critical support zone, with technical analysts warning that breaking below current levels could accelerate declines toward the $40,000 range. However, Coinbase reports institutional buyers are using the weakness as an entry opportunity.
Divergent Views Within Financial Leadership
Not all high-net-worth investors share Grantham's pessimism. Mexican billionaire Ricardo Salinas Pliego has increased his Bitcoin allocation from 10% in 2020 to 70% of his investment portfolio. The Grupo Salinas founder considers Bitcoin superior to fiat currency and gold due to its unseizability and borderless nature.
Salinas points to Bitcoin's appreciation against real assets—noting a London property that cost 4,000 BTC in 2016 now costs under 30 BTC—as evidence supporting his thesis. His conviction has persisted through regulatory challenges and market volatility.
Implications for Crypto Professionals
For web3 professionals, these contrasting viewpoints from prominent investors reflect the broader uncertainty affecting the industry. Market downturns historically lead to hiring freezes and workforce reductions at crypto companies, though they also create opportunities for builders focused on fundamental development rather than speculation.
Professionals should monitor how sustained price pressure affects company funding rounds, project timelines, and job security across the sector. Institutional buying during this dip suggests continued long-term interest, though near-term volatility may persist.
