The crypto market took another hit on Feb. 5, deepening a sell-off that has wiped out trillions in value over the past few months. Bitcoin fell below the key psychological support level of $70,000, while the total value of all cryptocurrencies dropped to around $2.3 trillion. Not long ago, the market’s combined valuation stood above $4.2 trillion, highlighting just how sharp the downturn has been.
The latest leg down has reignited debate over the long-term future of digital assets, especially after well-known economist Nouriel Roubini — often called “Dr. Doom” for his pessimistic outlooks — warned that the industry could be heading toward what he described as a “crypto apocalypse.”
Roubini, who gained fame for correctly warning about the 2008 global financial crisis, has long been a critic of cryptocurrencies. According to him, Bitcoin and many altcoins lack real-world use and mass adoption, which he believes puts their long-term value at risk. He also argues that much of what is marketed as blockchain technology does not live up to the ideals of decentralization.
In one of his recent comments, Roubini said that around 95% of so-called blockchain-based money and digital services are “blockchain in name only.” He claimed most of these systems are private instead of public, centralized rather than decentralized, and controlled by a limited number of validators instead of being open and permissionless.
Roubini isn’t the only prominent voice sounding the alarm. Longtime Bitcoin critic and gold advocate Peter Schiff has also repeated his view that Bitcoin could continue to fall over time, especially as traditional assets like gold trade close to their all-time highs. Schiff often points to gold’s long history as a store of value, contrasting it with Bitcoin’s relatively short track record.
Still, not everyone sees the current slump as the end of the road for crypto. Many long-term supporters argue that deep and painful corrections are part of the industry’s DNA. Bitcoin, for example, lost more than 70% of its value in 2022 following the collapse of major crypto firms like Terra and FTX. Despite that crash, the market eventually staged a strong recovery.
Galaxy Digital CEO Michael Novogratz recently echoed this view, suggesting that the market may be closer to the lower end of its current range. He noted that anyone who has been in crypto for several years understands that extreme volatility — and periods of intense pain — come with the territory.
There are also a few factors that could support a rebound in the coming weeks or months. One potential tailwind is monetary policy. If the U.S. Federal Reserve continues cutting interest rates, riskier assets like cryptocurrencies could become more attractive to investors searching for higher returns.
Market sentiment indicators also suggest that fear is running high. The Crypto Fear and Greed Index has dropped to an extreme fear reading of 11. Historically, such low levels of sentiment have often appeared near market bottoms, with prices rebounding afterward, as seen in December last year. Technical indicators like the Relative Strength Index (RSI) and Stochastics for Bitcoin and Ethereum also point to oversold conditions, which in the past have sometimes preceded short-term recoveries.
Whether this downturn turns into the “apocalypse” some critics predict or becomes another chapter in crypto’s boom-and-bust cycle remains to be seen. For now, investors appear braced for more volatility ahead.
Also Read: BNB Slides Toward $615 Support as Oversold Signals Grow
