Blockstream CEO Predicts 90% Altcoin Crash: Invest in Bitcoin & Stocks
Adam Back Warns Investors: Altcoins May Face a 90% Decline
A Cautionary Message from Blockstream’s CEO
Adam Back, the CEO of Blockstream and a prominent figure in the cypherpunk movement, has issued a serious alert to those investing in cryptocurrencies. He foresees a potential drop in altcoin values by as much as 90%. Back, who is recognized for being mentioned by Satoshi Nakamoto in the foundational Bitcoin white paper, remains highly critical of alternative cryptocurrencies and crypto index exchange-traded funds (ETFs).
Advocating for Bitcoin and Bitcoin-Backed Stocks
In his recent statements, Back encourages investors to concentrate on Bitcoin (BTC) or shares of companies that hold Bitcoin, commonly known as Bitcoin treasury stocks. He believes these options offer greater security compared to investing in speculative altcoins. According to Back, publicly traded firms that provide Bitcoin exposure benefit from regulatory oversight, financial transparency, and regular audits, which he argues gives them a significant valuation edge based on Bitcoin’s net asset value (NAV).
Critique of Cryptocurrency ETFs
Back has also voiced concerns regarding cryptocurrency ETFs that encompass a broad spectrum of digital assets. He highlights their lack of transparency and the risks associated with underperforming tokens. He suggests that stocks focused on Bitcoin have emerged as a new avenue for speculative traders, providing a higher level of confidence due to their structured financial governance.
Current Market Trends and altcoin Performance
Recent data from the altcoin Season Index indicates a score of 12 out of 100, reflecting that altcoins are lagging significantly behind Bitcoin. For an altcoin season to be officially recognized, 75% of the top 50 cryptocurrencies must outperform Bitcoin over a 90-day timeframe—a threshold that is currently far from being achieved.
The State of Major Altcoins
Notable altcoins such as Ethereum (ETH) and XRP have recently experienced substantial losses, reinforcing Back’s pessimistic outlook. With no signs of a recovery for altcoins, his advice to investors remains straightforward: prioritize Bitcoin or invest in regulated companies that hold Bitcoin.
