A prominent Bitcoin critic has issued fresh warnings that the price is “collapsing,” arguing that falling miner participation and a sharp drop in hashrate could trigger a self-reinforcing decline in prices.
Bitcoin’s hashrate and price have come under scrutiny in recent days as miners in the U.S. shut down operations amid extreme winter weather, though many market participants say the disruption is temporary.
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A “Downward Spiral”?
Jacob King, a frequent critic of Bitcoin, said in a series of posts on X that the network was showing signs of mounting stress.
He pointed to what he described as the largest short-term decline in hashrate on record, suggesting that miner capitulation could accelerate selling pressure.
“We’re watching the Bitcoin network unravel in real time. Nearly every metric is contracting,” King wrote.
King said Bitcoin’s hashrate had fallen from around 1.13 zettahashes per second (ZH/s) to roughly 690 exahashes per second (EH/s) over a two-day period, calling the move unprecedented.
“Large numbers of miners have powered down their machines,” he wrote, adding that with prices falling and operating costs largely fixed, miners could be forced to sell Bitcoin to remain solvent.
“With prices falling and operating costs fixed, many will be forced to sell BTC to stay solvent, accelerating the downward spiral,” King said.
Traders Point to Winter Storm Impact
Traders and analysts pushed back on King’s claims, arguing that the hashrate decline was driven primarily by a powerful winter storm sweeping across large parts of the United States rather than by fundamental weakness in the Bitcoin network.
Winter Storm Fernan brought heavy snow and ice, placing strain on regional power grids and prompting major U.S.-based miners to curtail operations.
Foundry USA, one of the world’s largest Bitcoin mining pools, saw its hashrate fall by around 60% at the height of the storm. At its lowest point, the pool accounted for roughly 23% of the global network, according to industry estimates.
Other U.S.-linked mining pools reported similar reductions, with total network hashrate falling by as much as 30% during peak curtailment periods.
Many of the shutdowns were voluntary, reflecting miners’ participation in demand-response programs that compensate operators for powering down during periods of extreme grid stress.
“This was weather-driven and temporary, not a structural collapse or mass capitulation from low prices alone,” one X user responded to King.
Another wrote: “Hashrate drop is most likely due to the western winter storm. It will recover.”
King Reiterates Skepticism of Bitcoin’s Value
In separate posts, King said recent developments reinforced his long-held skepticism of Bitcoin’s investment case.
“One of my favorite things about investing is that, over time, the market settles every debate,” he wrote.
“People claimed Bitcoin would soar to millions, that countries will FOMO in, institutions will go all-in, and it will become some global reserve currency,” King said.
“In the end, it’s all noise. Mr. Market eventually exposes the uninformed by delivering facts, not narratives, and showing that these outcomes do not actually materialize.”
King’s remarks come despite Bitcoin’s significant growth in institutional participation over recent years.
Bitcoin Bears Grow Louder
King’s warnings add to a growing chorus of bearish commentary from economists and high-profile investors.
Economist Steve Hanke has reiterated his long-standing view that Bitcoin has “zero fundamental value.”
Investor Michael Burry, best known for predicting the U.S. housing market collapse, has also voiced skepticism, describing Bitcoin’s rise into six-figure price territory as speculative mania.
Burry has previously called the idea of Bitcoin trading at $100,000 “ridiculous,” arguing that enthusiasm for the asset has gone “too far.”
Veteran chart analyst Peter Brandt has similarly suggested that Bitcoin could move lower, while emphasizing the uncertainty of his projections.
“$58,000 to $62,000 is where I think it is going, BTC,” Brandt wrote in a post on X.
“If it does not go there, I will not be ashamed,” he added. “I am wrong 50% of the time. It does not bother me to be wrong.”
