What’s the deal with this crypto crash? Krugman, Nobel Prize and all, says it’s different this time. The current drop, he argues, is a crisis of faith that followed a rally driven more by politics than by, you know, actual value. So basically: the math checks out, but the vibe screams melodrama.
The “libertarian ideology” that supposedly held Bitcoin up? It doesn’t apply when the asset becomes a “political creation.” I’m telling you, nothing says “free market” like a currency that needs a committee meeting to decide if it’s worth something. Krugman insists this time is different. Sure, Larry squints, because that’s worked so well so far.
“It has bounced back several times from big declines because people had faith in it and because… there was a lot of ideology behind it. But this time looks different,” Krugman said.
‘Be Greedy’: Ripple CEO Reacts to XRP Price Crash
“Fimbulwinter”
Krugman says BTC might be facing its “Fimbulwinter,” which, if you don’t follow Norse mythology, is basically the long, cold season before the end of the world. He argues Bitcoin isn’t going to be an enduring asset after underperforming gold. Great, so now we have a currency that’s jealous of gold and its own winter playlist.
“…the next gold turns out to be gold, not Bitcoin. I think it’s a big wake-up for people that, you know, maybe this isn’t actually going to be an enduring asset,” Krugman said.
“In terms of the original idea that this was actually a superior form of money, it’s a total bust, and it’s a 17-year-old bust. That’s the thing that gets to me. This is not an idea of the future. This is not a cutting-edge technology. This is something that is only slightly younger than the first iPhone.”
“If it hasn’t made any inroads as an actual legitimate means of payment in 17 years, then clearly, it wasn’t a great idea to start with,” he said.
A bottom signal?
Meanwhile, the doom chorus is back: Krugman, Nouriel Roubini, and Mark Dow have all issued proclamations about the total collapse of crypto. Roubini even predicted another crypto apocalypse. Some folks hear that and think, “Buy signal!” I hear that and think, “Could we get a receipt for what I bought in the first place?”
Earlier today, Bitcoin dipped to $60,255-the lowest since October 2024-but managed to pare its losses. Because nothing says “bottom” like a volatile mood swing and a tweet from someone who used to be a professor.
Read More
- GBP CAD PREDICTION
- EUR ARS PREDICTION
- STX PREDICTION. STX cryptocurrency
- EUR CLP PREDICTION
- PEPE PREDICTION. PEPE cryptocurrency
- GBP RUB PREDICTION
- SPX PREDICTION. SPX cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- TON PREDICTION. TON cryptocurrency
- EUR HUF PREDICTION
2026-02-06 20:03