Ross Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, attributes the recent market downturn to internal “grift” that has corrupted the typical cycle.
Gerber contends that Bitcoin’s decline was unavoidable because a surge of speculative “scam” projects drained funds from valuable assets, causing retail investors to suffer losses and halting market momentum.
The ‘Grifter’ Cycle Explained
Gerber explains that this crash follows a familiar pattern observed in every bullish Bitcoin phase. As Bitcoin’s price climbs, it attracts opportunists aiming to exploit the hype for personal gain.
“Fraudsters flood in with scam or worthless coins and end up burning everyone,” Gerber stated.
He believes these low-value yet heavily promoted tokens acted like parasites within the ecosystem.
Rather than capital flowing steadily into Bitcoin itself, it was diverted into these risky ventures.
When those projects inevitably failed, there were no fresh catalysts left to push prices upward.
“Now there are no new drivers—only holders stuck with losses,” Gerber remarked. “Selling triggers more selling as leveraged traders panic.”
An Opportunity for Experienced Investors
Despite his sharp criticism of market manipulators, Gerber remains optimistic about Bitcoin’s long-term potential.
His firm continues to hold significant positions in Bitcoin alongside leading stocks like Nvidia (NVDA), viewing it as a legitimate asset class separate from what he calls the “crypto casino.”