VanEck Head of Research: No Bailout for Bitcoin Even if It Crashes

▲ Bitcoin (BTC)

A warning has emerged that even if Bitcoin (BTC) faces an unprecedented market collapse, it is an independent asset that can never expect a government bailout unlike the traditional financial system.

According to cryptocurrency-focused outlet Benzinga on February 13 (local time), Matthew Sigel, Head of Digital Assets Research, asserted that when the virtual asset market falls into crisis, the government or central banks will never step in as rescuers. Sigel emphasized that since Bitcoin was designed as an alternative to centralized financial power, the risks and responsibilities that come with it fall entirely on investors.

Sigel described Bitcoin as a sovereign asset, explaining that it exists outside the safety net of bailouts that traditional financial institutions have historically enjoyed during crises. Unlike the 2008 financial crisis, when major banks were revived with massive taxpayer funds, the virtual asset ecosystem operates on the harsh principle of market self-correction, where uncompetitive or failed participants are naturally eliminated.

He also warned against the misconception that Bitcoin has achieved a “too big to fail” status despite the significant inflow of institutional capital. Sigel noted that there is no central authority within the Bitcoin network capable of halting operations or reversing transactions in an emergency, adding that even in the event of rapid liquidation or sharp price declines, artificial rescue measures are impossible.

Virtual asset experts evaluate that the absence of a governmental safety net in a free-market environment is a core factor sustaining Bitcoin’s transparency and credibility. To support asset value, rigorous risk management and the health of the decentralized network are essential, and investors must accept extreme volatility as an inherent characteristic of Bitcoin.

VanEck urged that as the market matures, investors must clearly recognize Bitcoin’s independent nature. Strengthening its position as a standalone store of value, Bitcoin is undergoing a painful process of building long-term stability through the market’s own forces without government or institutional assistance.

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