Harvard Warning: Bitcoin May Collapse Under Weak Regulation

Bitcoin and the “Crash to $100” prediction

Back in 2018, a Harvard professor shocked the financial world by claiming that Bitcoin could crash all the way down to $100. While this hasn’t come true, he still insists Bitcoin is a highly speculative asset with no intrinsic value, vulnerable to collapse if stronger regulations are not in place.

Regulators were too lax – The core problem

According to him, weak regulatory oversight is the root of crypto’s instability. Agencies like the U.S. SEC and regulators worldwide have failed to set clear rules for:

   • Token listings – many “junk projects” raise funds unchecked.

   • Crypto exchanges – some operate without transparency, leading to scandals like FTX.

   • Lending platforms – several collapsed due to poor supervision and excessive leverage.

This regulatory gap created an environment where speculative bubbles thrive, but small investors are left exposed to severe risks.

Consequences for retail investors

The lack of oversight leaves retail traders vulnerable to psychological traps, such as:

   • Bear traps – panic selling during sharp dips before a rebound.

   • Bull traps – chasing sudden rallies that reverse into losses.

In both cases, retail investors tend to lose money, while whales and institutions gain the upper hand.

Bitcoin in 2025: Growth amid risks

By 2025, Bitcoin has seen new highs, with U.S. Bitcoin ETFs trading billions of dollars daily and institutional adoption accelerating. Still, the Harvard professor’s warning remains relevant:

   • Regulation is still uncertain, leaving room for major crashes.

   • Policy and taxation risks could weigh heavily on the market.

   • Whale dominance means Bitcoin’s price remains prone to manipulation.

Could Bitcoin really fall to $100?

Many analysts reject this extreme scenario, noting that:

   • Bitcoin is now widely held by ETFs, hedge funds, and financial institutions.

   • Blockchain use cases extend beyond speculation to payments, DeFi, and digital storage of value.

   • Bitcoin’s scarcity (21 million max supply) underpins its long-term value.

However, no one can completely rule out a severe collapse if a global policy crackdown or trust crisis hits.

Conclusion

The Harvard professor’s key message is clear: crypto markets need stronger, transparent regulation. Without it, both Bitcoin and retail investors remain at risk of unexpected crashes.

For investors, this serves as a reminder: while Bitcoin offers enormous upside, it also carries extreme risks. Smart strategies, discipline, and risk management are essential.

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.