WhaleWire CEO Jacob King: bitcoin is inevitably going to crash

WhaleWire CEO and financial analyst Jacob King believes that bitcoin is headed for a fall. According to him, a critical event has recently taken place: the mining BTC has become so centralized that for only the second time in history (the last time was in 2014), the network became vulnerable to a 51% attackIf more than 50% of the mining network's capacity is under the influence of attackers, it becomes possible to transfer cryptocurrency to a seller, wait for the transaction to be included in the blockchain, receive the goods, and after a while declare several blocks invalid and the transaction to the seller will be canceled.. Two mining pools control most of the network, which means centralization. At the same time, major players and ETFs are selling bitcoins.

Michael Saylor has promised investors that it will not issue shares below 2.5x mNAV«2.5x mNAV» — is a threshold set by MicroStrategy, meaning that the company will not normally issue new shares at a price below 2.5 times its own asset value, except to fund preferred share dividends. However, MicroStrategy recently waived this threshold, allowing it to issue new shares at a price below this ratio if it deems such an issue «beneficial» to the company, which provides more flexibility to purchase bitcoin with equity. and then immediately broke that promise by continuing to dilute shareholder equity. His goal is simple: to raise capital for himself and his businesses at the expense of ordinary investors. This is disastrous for bitcoin because it undermines trust, increases selling pressure, and signals that those with influence are ready to pull out while the retail market absorbs the fallout.

According to King, the key narrative driving the bitcoin bubble was the fantasy that the US government would buy bitcoin in bulk. Treasury Secretary Scott Bessent was silent on the air, admitting that they would not be adding bitcoin to the reserves. No immediate purchases, no new fuel for the market. Bitcoin’s growth has been built on false, exaggerated narratives. With centralization, the whale exodus, and the indifference of the US government now evident, the market is dangerously vulnerable. Tether, the main price manipulator, can only support prices for a certain amount of time. Therefore, a crash is only a matter of time.

Source: Jacob King