David Stockman Labels Bitcoin a ’Rug Pull’ After ~48% Drop; Analysts Push Back
Former U.S. budget director David Stockman publicly called Bitcoin a "rug pull" after BTC fell roughly 48% from about $125,000 to the low $60,000s over five months. Stockman argued the sharp correction undermines Bitcoin’s "store of value" narrative and reflects speculative behavior driven by post-2008 liquidity cycles. On-chain analyst Willy Woo countered that large-cap equities like Nvidia and Apple have experienced similar drawdowns (60–90%) yet remained long-term holdings, implying volatility alone does not disprove Bitcoin’s thesis. Investor Lawrence Lepard described Bitcoin as still in an adoption phase and forecast potential outperformance versus gold over the next two years. Key figures: David Stockman, Willy Woo, Lawrence Lepard. Key metric: ~48% BTC decline (from ~$125k to ~$65k). Primary keywords: Bitcoin, BTC, rug pull, store of value, drawdown, volatility. Secondary/semantic keywords included for SEO: on-chain analyst, large-cap tech drawdown, adoption phase, gold comparison, liquidity cycles. This debate may influence trader sentiment: negative headlines from a prominent critic can increase short-term selling pressure, while analyst defenses may support buy-the-dip strategies among longer-term holders.
Bearish
The article highlights a high-profile critic (David Stockman) framing a near-50% BTC correction as evidence Bitcoin is a speculative "rug pull." Such headlines can dent market sentiment and provoke short-term selling or increased volatility, especially among retail traders sensitive to negative narratives. Historically, sharp negative commentary during large drawdowns (2018, 2022) coincided with elevated fear and capitulation, pressuring prices in the short term. However, balancing voices from Willy Woo and Lawrence Lepard, who compare BTC to volatile mega-cap stocks and emphasize adoption, can steady sentiment among longer-term holders and buyers seeking dips. Short-term impact: likely bearish — increased selling pressure, wider bid-ask spreads, higher realized volatility. Medium-to-long-term: neutral to mixed — if on-chain fundamentals and adoption metrics remain strong, the episode may be a volatility event rather than terminal; price recovery could mirror past cycles where deep drawdowns preceded new highs. Traders should monitor on-chain flows, futures liquidations, funding rates, and macro liquidity signals; defensive actions include reducing leverage, widening stop-losses, or scaling into positions on confirmed accumulation signals.