Nouriel Roubini is warning again, and this time he is pointing straight at the GENIUS Act while Bitcoin sinks deeper into its slump. He said the token is not an inflation hedge and called it a “pseudo-asset class.”
Bitcoin traded around 67,400 dollars on Wednesday, down 45 percent from its late-October high. He wrote, “Calling Bitcoin or any other crypto vehicle a ‘currency’ has always been bogus.
Roubini also said Bitcoin has been tied to “the mother of all bubbles” and a “Ponzi Game.”
Nouriel pointed to its use in illegal transactions and said crypto can put the financial system in danger as lawmakers push it into banks. He mocked the GENIUS Act and said the bill should be called the “Reckless Idiot Act.”
The part that bothered Nouriel most is the lack of lender-of-last-resort support and no deposit insurance for stablecoins. He warned that some industry voices want interest paid on stablecoins, which he said could “undermine the foundations of the banking system.”
Market losses hit Bitcoin as investors pull back
The world’s biggest token has dropped more than 40 percent from its peak. Dip buyers are missing. Usual support is gone. Gold is winning the hedge fight. Stablecoins are beating Bitcoin in payments. Prediction markets are taking over speculation.
None of this happened because regulators crushed it. Washington has been friendly. Big firms have joined in. Wall Street has treated it like a real asset. Bitcoin got everything it wanted but the price still fell.
Robert Kiyosaki said, “Although Bitcoin is crashing I bought one more whole Bitcoin for 67k. Why? Two reasons: #1: Because the Big Print will begin when the US debt crashes the dollar and ‘The Marxist Fed’ begins printing trillions in fake dollars. #2: The magical 21 millionth Bitcoin is getting close to being mined. When the 21st millionth Bitcoin is mined… Bitcoin becomes better than gold.”
His view stands in sharp contrast to Nouriel, but it captures how divided this crypto moment is.
Flows move to gold as Bitcoin questions get louder
Despite global tension and a weak dollar, gold and silver have jumped while crypto has fallen.US gold ETFs pulled in more than 16 billion dollars in the last three months.
Spot Bitcoin ETFs saw about 3.3 billion dollars in outflows. Market cap has dropped by more than 1 trillion dollars.The digital-asset treasury model, once a big selling point, has cracked.
Companies like Strategy, MARA, Metaplanet, and GameStop bought Bitcoin, issued shares, and created a loop that boosted their value. That loop has now turned. The biggest DATs have fallen even faster than Bitcoin and many trade below the worth of their own holdings.
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Source: https://www.cryptopolitan.com/roubini-calls-cryptos-genius-act-reckless/
