Renowned economist Steve Hanke has once again voiced his disapproval of Bitcoin (BTC) amid the cryptocurrency’s recent sharp decline.
Hanke, who serves as a professor of applied economics at Johns Hopkins University, stated on December 16 via an X post that Bitcoin’s latest downturn highlights its fundamental lack of intrinsic value.
He emphasized that Bitcoin remains merely a speculative asset without any real underlying worth, reiterating this viewpoint as the digital currency traded below $86,000.
The recent plunge is part of a wider market correction. Since reaching its peak price of $126,000 in October 2025, Bitcoin has fallen by over 30%.
Experts suggest several factors behind this sell-off: macroeconomic challenges such as anticipated central bank interest rate hikes; forced liquidations surpassing $380 million; reduced trading activity during the holiday season; and growing apprehension about an artificial intelligence bubble negatively impacting risk assets overall.
Additionally, cautionary signals from the Federal Reserve have further weakened investor confidence. Concerns are rising about a potential contraction in the crypto market amounting to $3 trillion if prices continue their downward trajectory into 2026.
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