Bitcoin HODLers Face Grim Outlook, According to Peter Schiff
By Andrew Throuvalas
Published: April 25, 2024, 18:06 EDT
Renowned advocate for gold, Peter Schiff, has delivered a bleak prediction for Bitcoin enthusiasts. He issued a strong warning on Wednesday, stating that the digital asset is teetering on the edge of losing crucial and precarious technical price support.
The well-known economist and financial commentator took to Twitter to express his concerns, stating that if Bitcoin’s price falls below $60,000 again, it will be a “long way down.”
“It’s not looking good for HODLers,” Schiff wrote. “While hardcore Bitcoiners are accustomed to significant drops, the newcomers who own ETFs are in for a rude awakening.”
The anticipation leading up to the launch of Bitcoin spot ETFs in January, as well as their actual launch, has contributed to a 128% increase in Bitcoin’s price over the past year. Since their launch, the ETFs have seen a net flow of $12.2 billion.
However, over the past month, ETF flows have stagnated while Bitcoin has mostly traded within the range of $60,000 to $70,000. The volatility in the stock market, fueled by geopolitical instability in the Middle East, has also impacted the cryptocurrency market.
James Check, the lead analyst at Glassnode, expressed similar concerns last week, suggesting that the Bitcoin market could become “top-heavy” if the price drops below $58,800. This price level represents the entry point for many recent Bitcoin buyers, and they may panic sell if it is breached.
Nevertheless, Check believes that this cost basis will serve as a support level. “If we assume this is a resilient uptrend, we should expect the short-term holder cost basis to hold, somewhere in the range of $58,000 to $59,000,” he stated.
Peter Schiff’s animosity towards Bitcoin is well-documented, leading crypto enthusiasts to mock him for years. He argues that Bitcoin lacks a non-monetary use case, unlike gold, which is used in jewelry and various industries.
Following the recent Bitcoin halving, the digital asset’s inflation rate fell below that of gold, potentially making it a more favorable store of value. However, Schiff remains skeptical.
“I think ‘halving’ is an appropriate name for what’s happening, as soon Bitcoin HODLers will experience a halving of their net worths,” he remarked.
Stay updated with the latest news by following us on Google News.
