“Crypto is dead in America,” says tech billionaire who predicted Bitcoin would hit $200,000

A hot potato: Investor Chamath Palihapitiya, the billionaire who once said BTC would reach $200,000, has claimed that crypto is dead in America. He mostly blames regulators for digital assets’ demise, especially the SEC, who he says have “pointed their guns at crypto.”

Speaking on the latest episode of the All-In podcast, which he co-hosts, Palihapitiya pointed the finger of blame for crypto’s alleged demise in America at those who regulate the industry.

“The United States authorities have firmly pointed their guns at crypto,” said Palihapitiya.

The statement was a response to news that Coinbase, the second-largest crypto exchange in the world by trading volume, is considering moving outside of the US; it was granted a company license to operate in Bermuda last week.

Brian Armstrong, CEO of Coinbase, told CNBC that it is preparing for a years-long court battle with the US Securities and Exchange Commission after the regulator issued it with a Wells notice last month, which is usually the final step before charges are formally issued. Coinbase sued the SEC on Monday because, as Armstrong put it, the company believes the SEC is breaking the law.

“Crypto is dead in America. I mean now you have Gensler [chair of the US Securities Exchange Commission] even blaming the banking crisis on crypto – so the United States authorities have firmly pointed their guns at crypto.” As noted by Fortune, Gensler highlighted failed crypto-friendly banks Silvergate Bank and the Signature Bank of New York in his congressional remarks on the banking crisis.

Another exchange, Bittrex, has already said that it has started the process of winding down its US operations as it is not economically viable for it to continue operating in the current US regulatory and economic environment.

Palihapitiya said crypto companies “were probably the ones that were the most threatening to the establishment,” but he did admit that the industry pushed “the boundaries more than any other sector of the startup economy.”

Palihapitiya’s words starkly contrast his once bullish views on crypto. In 2021, he predicted that Bitcoin would rise from its then $39,000 price to $100,000 before eventually climbing to $200,000. He later said that Bitcoin had “effectively replaced gold.”

Bitcoin is nowhere near its all-time high of $68,789, but it is up around 65% since the start of the year, from $16,675 to the current price of $27,414. Earlier this month, BTC hovered above the $30,000 mark for the first time since last June.