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Ex-UK Chancellor Kwasi Kwarteng Advocates Bitcoin Amid Economic Concerns

Former UK Chancellor Kwasi Kwarteng has emerged as a proponent of Bitcoin, advocating for its potential as an alternative to traditional financial systems. Reflecting on his brief tenure and the controversial mini-budget of September 2022, Kwarteng acknowledged the rushed nature of the policy, which led to significant economic fallout. He criticized the UK's current fiscal trajectory, describing it as a "doom loop" of unsustainable spending and taxation. Kwarteng, now executive chairman of UK Bitcoin treasury firm Stack BTC, argues for a broader acceptance of digital assets, contrasting the UK's cautious stance with Europe's more progressive approach. He dismissed former Prime Minister Boris Johnson's criticism of Bitcoin as a "Ponzi," urging a more open-minded perspective on emerging monetary technologies. Stack BTC, which holds 31 BTC, has attracted political interest, including a 6% stake from Reform UK leader Nigel Farage.

Bitcoin Treasury Holders Liquidate Amid Debt Pressures

Genius Group has sold its remaining 84 BTC to settle $8.5 million in debt, marking a significant shift from its 2025 goal of holding 10,000 BTC. This move highlights a broader trend among Bitcoin treasury holders, who are increasingly selling their reserves to address financial pressures. Companies like Empery, Riot, and MARA Holdings have also liquidated substantial Bitcoin holdings recently, citing debt repayment and strategic pivots. The Bitcoin treasury trade, once seen as a bullish market strategy, is facing challenges as corporate and sovereign holders sell off assets. Bhutan, for instance, has reduced its Bitcoin holdings by 58% to fund national projects. While some entities like Metaplanet continue to accumulate Bitcoin, the trend of selling under financial strain raises questions about the stability and long-term viability of Bitcoin as a reserve asset.

Cathie Wood Predicts Milder Bitcoin Volatility Amid Market Maturity

ARK Invest CEO Cathie Wood suggests that Bitcoin's most severe crashes may be behind us as the cryptocurrency matures into a more established asset class. Wood notes that while 50% declines are still possible, they are now perceived differently compared to past cycles where drops of 85% to 95% were common. This shift reflects Bitcoin's evolving role as a financial asset and monetary system. Recent data from Glassnode supports this view, showing that Bitcoin's current downturn, a 52% decline from its October 2025 peak of approximately $126,200, is less severe than historical norms. Analysts now predict a maximum correction of around 72%, potentially bottoming near $34,000. This is a significant change from previous cycles, suggesting a more stable market environment. The transformation is attributed to the growing presence of long-term investors and institutional players, which is reducing volatility. As Bitcoin moves away from sharp boom-and-bust cycles, it may follow a path similar to gold and U.S. equities, characterized by slower, more sustained market movements.

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