Is $120,000 Peak a Dream?...Prominent Economist: "Bitcoin Will Converge to $0"

▲ Bitcoin (BTC), Cryptocurrency Crash/AI Generated Image

As Bitcoin (BTC) experiences unprecedented price volatility, a prominent economist who predicted the 2008 financial crisis issued a shocking warning, stating that Bitcoin's value will eventually converge to $0, citing energy consumption issues.

Cryptocurrency specialized media TheStreet reported on April 10 (local time) that economist Steve Keen pointed out the enormous energy waste caused by Bitcoin's proof-of-work system. Keen raised strong doubts about Bitcoin's long-term viability. He analyzed that as global pressure for energy conservation intensifies, policymakers will prioritize Bitcoin for regulation. Keen predicted that environmental factors would lead Bitcoin to technological obsolescence, eventually causing its removal from the market.

After reaching an all-time high of $126,000 in October 2025, Bitcoin has been exposed to sharp volatility since 2026. In February, it plummeted to $60,062, a drop of over 50% from its peak. Currently, it is attempting to recover around the $71,000 mark, testing to establish a support level. However, pessimists like Keen argue that this rebound is temporary and insufficient to prevent a long-term downtrend.

Some analysts maintain a pessimistic scenario that Bitcoin could fall to as low as $10,000 in the worst case. They diagnose that a cascading sell-off could occur if sharp liquidity contraction and institutional investor exodus coincide. The possibility of hawkish financial policy changes by the U.S. President Donald Trump administration is also exerting strong downward pressure on risk assets. Concerns are rising that the capital flow in the virtual asset market could rapidly cool down depending on the Trump administration's policy stance.

From a technical perspective, Bitcoin is struggling to break through the $72,000 resistance level. The 50-day moving average on the daily chart acts as a strong ceiling, consistently blocking rebound attempts. On the downside, the $60,000 and $62,000 levels serve as key support. The dominant analysis suggests that if these points break, the decline could quickly extend to $35,000.

Continued profit-taking by long-term holders and capital outflows from spot ETFs also weaken the market's downside rigidity. Major Bitcoin spot ETFs, including BlackRock's IBIT, have recently experienced net outflows of billions of dollars. Companies holding large amounts of Bitcoin, such as Strategy, are also facing pressure due to declining asset values. Whether Keen's warning of value evaporation will materialize will depend on future global energy policies and changes in the regulatory environment.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*