The European Central Bank (ECB) once again clearly stated its opposition to Bitcoin. The institution’s director, Ulrich Bindseil, and his advisor, Jürgen Schaaf, harshly criticized Bitcoin in their evaluation report.

“The SEC accepted it, but to us its value is still zero!”

In the report titled “New clothes of the naked king”, it was noted that it does not matter if the SEC accepts Bitcoin spot ETFs and the following statements were used:

“On January 10, the SEC accepted spot Bitcoin ETFs. This situation was seen by some circles as an indisputable victory and proof that Bitcoin investments are safe. We do not agree with either of these claims. The value of Bitcoin is still zero to us. Bitcoin still represents a boom and bust cycle for societies. The damage it will bring to societies will be enormous. “The damage, both environmentally and in terms of wealth redistribution, will be inestimable.”

“Bitcoin has failed”

The report also argued that underlying Bitcoin’s decentralization is illegal activities carried out under pseudonyms rather than anonymity. It was also stated that the increase in the price of Bitcoin should not be accepted as a sign of stability:

“Bitcoin has failed to become a global decentralized currency. This cryptocurrency is still little used in legal transactions. Recent ETF approvals do not change the fact that Bitcoin cannot be a means of payment or investment.”

“Dead cat is still jumping”

One of the most interesting points of the report was how the two authors evaluated the rising price of Bitcoin:

“So why is this dead cat still jumping? The rally, which started in the fall of 2023, occurred especially with the expectation that the Fed would change its interest rate policy. Reward halving and spot ETF expectations extended this rally. A low interest rate environment always whets the appetite of investors. ETF decisions also opened Wall Street’s floodgates to Bitcoin. However, if large investments and inflows do not continue, the price will one day return to where it should be. There is a speculative bubble right now. “When these investments end, the price of Bitcoin or any other asset will definitely go to zero.”

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