Signs of a Bottom or More Pain Ahead? FT Unpacks Three Waves of Bitcoin Negativity

FT Highlights Bitcoin Criticism Amid Market Pullback

Bitcoin’s recent 35% price drop has drawn a wave of negative coverage, with the Financial Times (FT) prominently featuring three critical articles on its website Wednesday. The U.K.-based publication has long expressed skepticism toward cryptocurrencies, and this week’s coverage reinforced that stance.

The first article, “The fatal flaw in using bitcoin as a currency,” claimed bitcoin effectively faced a 900% annualized inflation rate during its decline. The piece argued that bitcoin’s fixed supply prevents it from contracting when demand falls, unlike fiat currencies, which central banks can adjust to control inflation. According to the FT, this structural inelasticity limits bitcoin’s viability as a currency.

The second story, “Infinite money glitch, meet arithmetic,” focused on Strategy (MSTR) and its model of issuing shares or debt to buy bitcoin. The report suggested the approach is now exposed, as spot bitcoin ETFs have eliminated any premium for MSTR stock, potentially forcing sales of bitcoin. While crypto observers argue that such a “death spiral” scenario is overstated, the FT framed it as a cautionary tale of market arithmetic meeting reality.

The third article, “Crypto hoarders dump tokens as shares tumble,” extended the critique to other digital treasury companies following similar strategies. Many of these firms are now trading below the market value of their crypto holdings and selling tokens to fund buybacks or service debt. The FT warned that most could face serious risk. Some bitcoin bulls, however, see opportunity: capital may flow back into bitcoin itself rather than the management teams behind these ventures.

The timing of the coverage is ironic. Bitcoin remains up more than 350% over the past five years, even as the U.K. government proposes another round of tax increases to shore up finances.

Satoshi Nakamoto famously embedded the message “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks” in bitcoin’s genesis block. If written today, it might read: “Chancellor on brink of £26B in new taxes.”