Nouriel Roubini warns again, and this time he points the finger directly at the GENIUS law as Bitcoin sinks further into its doldrums. He said the token was not a hedge against inflation and called it a “pseudo-asset class.”
Bitcoin was trading around $67,400 on Wednesday, down 45% from its late October high. He wrote: “Calling Bitcoin or any other cryptographic vehicle a “currency” has always been wrong.
Roubini also said that Bitcoin was linked to “the mother of all bubbles” and a “Ponzi game.”
Nouriel highlighted its use in illegal transactions and said crypto could put the financial system at risk as some were introducing it into banks. He mocked the GENIUS Act and said the bill should be called the “Reckless Idiots Act.”
What bothered Nouriel the most was the lack of lender of last resort support and the absence of deposit insurance for stablecoins. He warned that some industry voices want interest to be paid on stablecoins, which he said could “undermine the foundations of the banking system.”
Market Losses Hit Bitcoin as Investors Withdraw
The world’s largest token has fallen more than 40% from its peak. Dip buyers are missing. The usual support is gone. Gold wins the battle of the hedges. Stablecoins beat Bitcoin in terms of payments. Prediction markets take precedence over speculation.
None of this happened because the regulators squashed it. Washington has been friendly. Big companies have joined in. Wall Street treated him 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 $67,000. For what ? Two reasons: #1: Because the Big Print will begin when US debt causes the dollar to fall and the “Marxist Fed” begins printing billions in fake dollars.
His view contrasts sharply with Nouriel’s, but it shows how divided this crypto moment is.
Flows Shift Toward Gold As Bitcoin Issues Get Stronger
Despite global tensions and a weak dollar, gold and silver surged while cryptocurrencies fell. US gold ETFs have returned more than $16 billion in the past three months.
Spot Bitcoin ETFs saw outflows of around $3.3 billion. Market capitalization fell by more than $1 trillion. The treasure trove model of digital assets, once a big selling point, has collapsed.
Companies like Strategy, MARA, Metaplanet, and GameStop bought Bitcoin, issued shares, and created a loop that increased their value. This loop is now disabled. The largest DATs have fallen even faster than Bitcoin and many are trading below the value of their own holdings.
