The European Central Bank (ECB) has issued a scathing criticism of Bitcoin (BTC), saying the world’s largest cryptocurrency is on the “road to irrelevance” after costing investors billions of dollars in losses.
In a blogpost titled “Bitcoin’s Last Stand,” the ECB said that Bitcoin’s price stabilization in recent days is likely a “last gasp before the road to irrelevance.”
The ECB goes on to say that the sharp decline in cryptocurrencies was foreseeable before the crypto exchange FTX went bankrupt and sent the price of Bitcoin down below $16,000 U.S.
Bitcoin’s price rose above $17,000 U.S. on November 30, a two-week high for the digital coin. However, it struggled to maintain that level, falling to $16,875 U.S. in late day trading.
The remarks from the ECB come as the entire cryptocurrency industry struggles following the failure of FTX, an exchange that was previously valued at $32 billion U.S.
Analysts say that FTX’s collapse is likely to lead to new regulations of cryptocurrencies. In Europe, a new law called “Markets in Crypto Assets,” or MiCA, is expected to harmonize regulation of digital assets across the continent.
This is not the first time that the ECB has criticized crypto. ECB President Christine Lagarde said earlier this year that she thinks cryptocurrencies are “worth nothing.”
The price of Bitcoin is down 75% from an all-time high of $68,000 U.S. reached in November 2021.
