Renowned gold investor Peter Schiff has recently taken to social media to alert the public of a potential dramatic decline in Bitcoin‘s value. Despite Bitcoin’s over 10% fall from its peak of $73,737 on March 14th, Schiff expects the cryptocurrency to plunge even further.
Predicting Market Overheating
Schiff compares the current market’s bullish sentiment to that of 2011, signaled by the “laser eyes” trend among crypto supporters. He cautions that intense market enthusiasm often leads to substantial drops, suggesting that the current market optimism could be a prelude to a larger crash.
Additionally, Schiff expresses doubt regarding the long-term performance of spot Bitcoin ETFs, which have seen a considerable influx of investment. He implies that the interest in Bitcoin ETFs may wane, potentially causing a downturn in Bitcoin’s value.
Skepticism on Bitcoin’s Short-term Prospects
Amidst anticipation for the 4th Bitcoin block reward halving, an event usually associated with positive price movement, Schiff remains skeptical of its potential beneficial impact. His stance contrasts with many analysts who expect the halving to positively influence Bitcoin’s market price.
Currently, market sentiment remains high with the Crypto Fear and Greed Index indicating “extreme greed,” despite the recent drop in Bitcoin’s price. Bitcoin is trading at $64,410, a 5.5% decrease over the past day. Recent market activities resulted in the liquidation of long positions worth about $442 million.
