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Bitcoin Risks 'Spiraling Price' on Environment, Regulatory Concerns: BCA Research
ESG funds will seek to avoid bitcoin investment, the research firm noted.
Updated Dec 12, 2022, 12:50 p.m. Published Mar 1, 2021, 1:22 p.m.
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Canada-based global investment research firm BCA Research has pointed to several factors that pose a long-term threat to bitcoin's price.
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The energy-intensive nature of bitcoin mining and potential regulatory hurdles could hamper bitcoin's progress to the point where the cryptocurrency could end up "losing most its value over time," BCA Research said, according to a Bloomberghttps://finance.yahoo.com/news/bitcoin-long-term-value-doubted-042342617.html report on Monday.
According to Cambridge Bitcoin Electricity Consumption Index, bitcoin's annualized electricity consumption now equals Argentina's annual carbon footprint.
A Bloomberg article recently called bitcoin mining a "dirty business," though CoinDesk columnist Nic Carter called the analysis "flawed." And U.S. Treasury Secretary Janet Yellen said last month that bitcoin is a "highly speculative asset" and an "extremely inefficient" way to conduct monetary transactions.
BCA Research's chief market strategist, Peter Berezin, wrote in the report released Friday that the expense and slowness of bitcoin transactions make it "unsuitable as a medium of exchange," further warning that environmental, social, and governance-focused (ESG) funds are likely to shun companies associated with the top cryptocurrency.
"As ESG funds start to flee [b]itcoin, its price will begin a downward spiral. Stay away," Berezin noted.
According to the research firm, governments will work against bitcoin in a bid to avoid losing billions of dollars in revenue from seigniorage – the difference between the face value of money and the cost to produce it.
Also read: Crypto Long & Short: How Coinbase Going Public Is Reshaping Trust in Markets
But Berezin's warning is likely overblown, as major listed U.S. firms have been betting on bitcoin in recent months as a way to hedge against inflation and a devaluing dollar. Most notably, U.S. electric car maker Tesla, a Fortune 500 company, disclosed a $1.5 billion bitcoin investment last month, raising hopes of more widespread corporate involvement.
Meanwhile, regulatory frameworks for crypto assets are seen as a positive for institutional adoption, and only a few nations have, or are planning to bring in, extreme restrictions on digital currencies.
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KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
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Key bitcoin price levels to watch as downward pressure builds
As bitcoin remains in a downtrend, several technical and onchain levels stand out as critical areas of support.
What to know:
- The 100-week moving average at $87,145 remains the main line of defense.
- Below this, the cost basis of U.S. spot bitcoin ETF buyers at $84,099 has provided support during recent consolidation.
- A sustained break below $80,000 would likely open the door to a revisit of the April 2025 low near $76,000.
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