Macro analyst Alex Krüger declared crypto a “failed asset class” on Tuesday but carved out four exceptions he still considers worth owning as Bitcoin (CRYPTO: BTC) slides toward $65,000.

Most Crypto Is Worthless But Four Categories Are Different

Krüger’s case against crypto covers the full picture.

Most assets have poor value accrual, founders dumped on retail without consequences, the meme coin cycle wiped out capital and trust, and DeFi hacks have accelerated sharply since last April.

His view is that “crypto” as most people know it has failed.

Despite that, Krüger draws a clear line between failed crypto and blockchain applications that are actually working. 

His four exceptions are:

  • Prediction markets, now embedded in everyday life
  • Perpetual futures, with usage exploding on offshore and DeFi exchanges
  • Privacy assets, led by Zcash (CRYPTO: ZEC), which has been trending higher as Bitcoin trends lower—a sign of genuine reallocation
  • AI tokens with real revenue, with Venice cited as the standout for having token value backed by actual business performance rather than narrative

Hyperliquid Is The Clearest Example Of What Crypto Should Be

Within the exceptions, Kruger pointed to Hyperliquid (CRYPTO: HYPE) as the model every project should follow. 

The platform returns 99% of fees to token holders via buybacks, which Kruger described as “what every investor actually wants to see to be invested in a good business rather than a fleeting narrative.”

The DOJ’s recent confiscation of $15 billion in Bitcoin from Cambodia’s pig butchering farms highlighted why privacy demand is real and growing. 

Kruger noted that beyond criminal use cases, general demand for non-custodial private stores of value is a legitimate long-term need that Zcash currently serves best.

Clavicular Calls Bitcoin Garbage, Traders Call It A Bottom Signal

Adding a contrarian footnote to the bearish week, viral influencer Clavicular launched an expletive-filled anti-Bitcoin rant on Kick livestream, calling it “horrible investment” and “garbage.” 

Crypto traders responded by calling it “probably the most glaring bottom signal in the history of financial markets.”

Peter Schiff went further on X, predicting a quick fall below $20,000 once Bitcoin breaks $50,000. 

“There is way too much complacency in Bitcoin for the market to be anywhere near a bottom,” Schiff posted.

Image: Shutterstock