--- title: "Europe’s Central Bank Warns That Bitcoin Is on Its “Last Gasp”" description: "The European Central Bank is throwing some major shade at bitcoin — even as it bounces back above its low point following the FTX collapse." date: "2022-12-02" modified: "2022-12-02" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/european-central-bank-bitcoin-last-gasp" categories: - "Bitcoin" - "Blockchain" - "Cryptocurrency" - "Future Society" tags: - "bitcoin" - "European Union" - "ftx" - "the digest" --- # Europe’s Central Bank Warns That Bitcoin Is on Its “Last Gasp” ![The European Central Bank is throwing some major shade at bitcoin — even as it bounces back above its low point following the FTX collapse.]() *\Image: Getty / Futurism\* ## Rebound, Schmebound The European Central Bank is throwing some major shade at bitcoin even as it bounces back following the FTX collapse. In a [blog post titled "Bitcoin's last stand]()," published on its official European Union website, the ECB lobs a devastating takedown at the digital currency — and warns that its demise could just be getting started. As the ECB notes, bitcoin's peak value of nearly $70,000 occurred only a year ago in November 2021, yet by June 2022 it had fallen dramatically to less than a third of that. But the real problem, they charge, aren't localized ups and downs but weaknesses in the entire foundation of the tech: that it has no intrinsic value, has largely been used a vehicle for speculation, and is seldom used for legal transactions. "For bitcoin proponents, the seeming stabilization signals a breather on the way to new heights," reads the post. "More likely, however, it is an artificially induced last gasp before the road to irrelevance — and this was already foreseeable before FTX went bust and sent the bitcoin price to well below USD16,000." ## Bearish Bitcoin Though bitcoin stabilized around $20K per token in the early fall, the [collapse of prominent exchange FTX]() has driven it even lower since. Since FTX's dramatic implosion in early November, BTC has rebounded back about $17,000 this week, but even crypto proponents are warning that it's far from a signal of sea change. "This is just a bearish retest," Vijay Ayyar, an executive at the Luno crypto exchange, [told *CNBC*](). Indeed, even that price couldn't be sustained with the value again hovering a bit above $16K. The EBC went further than just outlining the currency's downward trend and took on entities that promote crypto to customers as an unregulated but comparable alternative to fiat. "Since Bitcoin appears to be neither suitable as a payment system nor as a form of investment, it should be treated as neither in regulatory terms and thus should not be legitimi**z**ed," the post reads. "Similarly, the financial industry should be wary of the long-term damage of promoting Bitcoin investments — despite short-term profits they could make (even without their skin in the game)." The keepers of the Euro have spoken — and to them, bitcoin is bunk. **More on crypto crashes:** [*Impoverished Crypto Bros Desperately Trying to Sell Luxury Cars*]() ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()