Bitcoin

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Nassim Nicholas Taleb, author of the seminal risk analysis book "Black Swan," <a href="https://twitter.com/nntaleb/status/1696503724259082733" rel="noopener noreferrer nofollow">recently warned</a> of an impending demise for Bitcoin, the top cryptocurrency. 
After the popularity of a fad—like <a href="https://u.today/michael-saylor-shares-important-bitcoin-btc-indicator" rel="noopener noreferrer nofollow">Bitcoin</a>—diminishes, those who had been its most ardent supporters often claim that its downfall was predictable, Taleb wrote on X.&nbsp; 
According to data from CryptoQuant, Bitcoin's trading volume on all exchanges collapsed in late August, recording a staggering 94% decrease from March.&nbsp; 
Taleb also recently took to social media to argue that Bitcoin's eventual downfall would not be caused by a market crash, but by "inexorable decay." He stated, "Fads are more threatened by indifference than by disgust." 
The scholar's comments come at a peculiar time for Bitcoin, which is up more than 6% today following Grayscale's victory against the U.S. Securities and Exchange Commission.&nbsp; 
Despite the recent one-day sell-off on Aug. 17, which was the biggest since November's FTX fallout, long-term investors appear to remain relatively unshaken.&nbsp; 
Nonetheless, Taleb contends that as trading volume diminishes, the risk of market manipulation escalates, a situation he likens to how "Open Ponzis implode."&nbsp;He earlier highlighted that Bitcoin's trading volume had dropped by over 85% from its peak. 
Experts like Julio Moreno, head of research at CryptoQuant, <a href="https://www.cnbc.com/2023/08/28/bitcoin-trading-volume-is-at-its-lowest-in-more-than-four-years.html?__source=sharebar|twitter&amp;par=sharebar" rel="noopener noreferrer nofollow">suggest</a> that low trading volumes are typical in bear markets and are likely to pick up in a bull market, but Taleb's warnings point to the fact that Bitcoin could be potentially entering an ice age.&nbsp; 
Some analysts even claim that the market is not necessarily bearish, and the underwhelming price action could be attributed to the lack of major catalysts. The potential approval of a spot <a href="https://u.today/grayscales-bitcoin-etf-decision-delayed-yet-again" rel="noopener noreferrer nofollow">Bitcoin ETF</a> could potentially change that.&nbsp;

"Black Swan" Author Slams Bitcoin as a Fad

U_Today

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