Jeremy Grantham Calls Bitcoin Useless as Crypto Fades ’With a Whimper’
Billionaire investor Jeremy Grantham (GMO co-founder) told CNBC’s “Squawk Box” that Bitcoin is a “useless, speculative mechanism” and predicted crypto will dwindle “with a whimper.” He cited Bitcoin’s failure to behave like a reliable store of value.
Grantham pointed to Bitcoin’s drawdown: it is down about 52% from its October all-time high near $126,080, despite strong macro conditions. He contrasted this with gold, which rose to a new record above $5,500 per ounce earlier this year before falling more than 25% to around $4,096.
On trading implications, the article notes Bitcoin weakening (recently around the $60,000 area). Separately, Strategy’s preferred stock, Stretch (STRC), fell to a new record low after U.S. markets opened—down to about $71.25 before recovering toward $75.30—highlighting stress linked to Bitcoin’s weakness.
While Grantham acknowledged blockchain rails could be transformative, his criticism was specifically aimed at Bitcoin and other cryptocurrencies. The piece also references similar recent skepticism from Mark Cuban about Bitcoin versus gold as a hedge.
Bearish
This is mildly to moderately bearish for near-term trading sentiment because prominent traditional investors are again framing Bitcoin as an unreliable store of value. Grantham’s “Bitcoin will dwindle” message reinforces existing narrative risk when Bitcoin is already down ~52% from its peak, which can dampen dip-buying and keep positioning cautious.
The STRC sell-off detail matters for traders: when an instrument tied to Bitcoin (Strategy’s Stretch/STRC) prints fresh lows immediately as Bitcoin weakens, it signals risk is propagating through leveraged or structurally linked products. That pattern typically amplifies volatility and can tighten liquidity expectations in the short run.
Longer term, the article acknowledges possible utility for blockchain rails, which limits the damage to the broader crypto stack. Still, as long as the market continues to compare Bitcoin unfavorably versus gold (hedge debate), headline risk can persist and cap rallies. Similar cycles of high-profile skepticism have historically coincided with choppy price action and slower recovery until flows re-stabilize (e.g., after ETF/derivatives positioning resets).