Bitcoin Bears Take Center Stage: FT Delivers a Trifecta of Negative Headlines

FT Highlights Bitcoin Woes as Critics Sound the Alarm After 35% Drop

Bitcoin’s recent 35% decline has sparked a flurry of criticism, with the Financial Times (FT) taking center stage on Wednesday by prominently featuring three critical articles on its website. The U.K.-based publication has long been skeptical of cryptocurrencies, and its coverage this week underscores that sentiment.

The first piece, “The fatal flaw in using bitcoin as a currency,” argued that bitcoin effectively faced a 900% annualized inflation rate during its decline. The article claimed that bitcoin cannot function as a currency because its fixed supply cannot contract when demand falls, unlike fiat money, which central banks can adjust to control inflation. Bitcoin’s structural inelasticity, the FT contended, makes it fundamentally ill-suited for transactional use.

The second story, “Infinite money glitch, meet arithmetic,” focused on Strategy (MSTR) and its bitcoin accumulation model. The FT suggested that the approach of issuing shares or debt at a premium to purchase bitcoin is now flawed, especially as spot bitcoin ETFs have removed any stock premium. The report warned of potential forced bitcoin sales, though crypto observers note that this “death spiral” scenario is likely exaggerated.

The third article, “Crypto hoarders dump tokens as shares tumble,” extended the critique to other digital treasury companies following similar strategies. Many firms are now trading below the market value of their bitcoin holdings and are selling tokens to fund buybacks or service debt. The FT framed this as a risky, one-way bet that could wipe out numerous companies. Some bitcoin proponents, however, argue that such shakeouts may ultimately benefit the cryptocurrency itself, redirecting capital away from management teams and toward bitcoin.

The timing of the coverage was ironic: bitcoin remains up more than 350% over the past five years, even as the U.K. government moves to implement another round of higher taxes.

Satoshi Nakamoto famously embedded the headline “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks” in bitcoin’s genesis block. If he were active today, perhaps the message would read: “Chancellor on brink of £26B in new taxes.”