Economist Nouriel Roubini, famously known as "Dr. Doom," warned in February 2026 of an imminent "Crypto Apocalypse," arguing that the cryptocurrency experiment has failed and that policymakers must act before it destabilizes the broader financial system. In a recent op-ed, Roubini highlighted that despite the return of a pro-crypto administration and promises of a "golden age" where Bitcoin would reach $200,000, the market has instead cratered, with Bitcoin dropping 35% to 42% from its October 2025 peak as of February 2026.
The Failure of "Digital Gold"
Roubini asserts that Bitcoin has failed in its primary promise as a hedge against macroeconomic and geopolitical risks.
Gold vs. Bitcoin: While physical gold surged more than 60% over the past year amid rising debt and global tensions, Bitcoin fell 6% to 7% in the same period.
Risk Asset, Not Hedge: Roubini argues Bitcoin acts as a "leveraged risk asset" that correlates with speculative tech stocks rather than providing safety.
Currency Credentials: He dismissed the term "currency" as "bogus," stating crypto fails as a unit of account, a means of payment, and a stable store of value.
Systemic Risks and Stablecoins
A major part of Roubini's warning focuses on the potential for a banking crisis triggered by stablecoins and new regulations like the GENIUS Act.
Stablecoin Vulnerabilities: He warns that stablecoins lack lender-of-last-resort access or deposit insurance, making them vulnerable to bank-style runs.
Destabilizing Banking: Efforts to allow stablecoins to pay interest could, in his view, undermine the foundations of traditional fractional reserve banking.
DeFi Limitations: Roubini contends that decentralized finance (DeFi) will never scale because governments will not permit the anonymity required for it to thrive, as it primarily serves illicit activities.
Market Sentiment and Dr. Doom's Track Record
Roubini’s warnings carry weight due to his accurate prediction of the 2008 housing bubble. He views the current crypto decline—specifically Bitcoin falling below the $70,000–$72,000 range in early February 2026—as a "death spiral" for the industry. He maintains that the future of money lies in the gradual evolution of traditional digital ledgers and central bank systems, not radical decentralization.
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