Bitcoin is once again at the center of controversy. Financial analyst Jacob King, who has over half a million followers on X, published a viral thread warning that BTC could be on the brink of a major crash. His post is raising eyebrows because he argues that several “hidden dangers” are quietly stacking up, leaving the market more fragile than most retail investors realize.
At the time of writing, Bitcoin is trading around $112,000. That’s nearly 10% below its all-time high of $124,500 set in mid-August. The market has already cooled slightly, but King believes the real pain might still be ahead.
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Mining Centralization Risks
One of King’s boldest claims is that Bitcoin mining has become dangerously centralized. He points out that just two pools now control the majority of the network’s hash power. According to him, this raises the risk of a 51% attack – where a small group of miners could theoretically manipulate transactions or block confirmations.
He also draws a parallel with 2014, when the BTC price faced a similar centralization scare before a major crash. Whether or not the comparison holds, it’s a reminder that decentralization is one of Bitcoin’s core strengths, and any erosion of that principle can shake investor confidence.
Bitcoin is heading for a major crash.
— Jacob King (@JacobKinge) August 24, 2025
While the media stays silent, a critical event recently unfolded: BTC mining has become so centralized that, for only the second time in history (last time was in 2014, before mega-crash), the network is vulnerable to a 51% attack. Two…
Whale Exits and ETF Selling
King also highlights what he calls an “unprecedented exodus” of large holders. On-chain data, he claims, shows whales and even ETFs steadily offloading Bitcoin. While these sales aren’t always obvious to retail traders, he suggests they’re quietly adding significant sell pressure in the background.
This lines up with recent reports of declining ETF inflows compared to earlier in the year, as well as slowing demand from institutions after the initial wave of excitement.
The Michael Saylor Controversy
No crash warning would be complete without mentioning Michael Saylor, and King doesn’t hold back. He accuses the MicroStrategy chairman of breaking promises to investors by issuing stock below a threshold he once swore he wouldn’t cross.
King argues that Saylor’s decision to dilute shareholders in order to buy more Bitcoin reveals “true intentions” – securing capital for himself while leaving ordinary investors exposed. He believes this move undermines trust, not just in MicroStrategy but also in the broader Bitcoin narrative.
The U.S. Treasury Narrative Collapses
Another major point in King’s thread is the collapse of the idea that the U.S. government might add Bitcoin to its reserves. Treasury Secretary Scott Bessent recently admitted that there are no such plans, calling the narrative little more than “hopium.”
For many investors who were banking on U.S. adoption as a bullish catalyst, this was a blow. King frames it as proof that one of the strongest bullish stories in the market has fallen apart.
His Final Warning
King ties these threads together – mining centralization, whale exits, questionable leadership moves, and fading government interest – into a single thesis: that Bitcoin’s current price levels are unsustainable. He argues that Tether can’t keep propping up liquidity forever, and once fresh money dries up, the market could face a cascading collapse.
CaptainAltcoin Take
So, is he right? There’s no denying that some of his points hold weight. ETF inflows have slowed, the U.S. Treasury won’t be buying BTC anytime soon, and MicroStrategy’s moves do spark debate. Mining centralization is also a real concern, though a full-blown 51% attack on Bitcoin remains extremely unlikely.
But calling for an imminent collapse might be a stretch. Bitcoin has faced countless “end of the world” predictions before – many of them during times of much greater fragility than today. The market is cooling off from its August highs, and a correction deeper than 10% wouldn’t be unusual in crypto. Still, writing off BTC entirely because of these risks may underestimate its resilience.
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