Bitcoin’s price, down roughly 70% from its peak, is not the bottom, and there remains a material risk of further declines. This view was voiced by Peter Schiff, president of Euro Pacific Capital.
#Bitcoin has far more downside risk than 70%. After such a decline Bitcoin will still be way over-priced, so $5,000 will not even be close to the bottom. https://t.co/VGj6ZPuwvi
— Peter Schiff (@PeterSchiff) December 5, 2022
According to the gold advocate, the forecasts by Standard Chartered foresees that the FTX collapse will continue to weigh on sentiment in the crypto markets, leading in 2023 to a decline in the price of digital gold to $5,000.
“After such a fall, Bitcoin will still be massively overvalued, so $5,000 will not be anywhere near the bottom,” Schiff wrote.
In a subsequent tweet he urged investors not to make the mistake of thinking that Bitcoin is forming a floor at $17,000.
Don’t make the mistake of thinking that #Bitcoin is forming a floor at $17K. It’s forming the next ceiling. During this bear market every time Bitcoin takes another leg down, it consolidates its loses prior to its next leg lower. These landings aren’t bottoms. They’re trap doors.
— Peter Schiff (@PeterSchiff) December 6, 2022
“It’s forming the next ceiling. In this bear market, every time Bitcoin makes another leg down, it consolidates its losses before the next decline,” said the president of Euro Pacific Capital.
One user noted that regardless of price, Bitcoin will still crush pet rocks next year.
Why would #Bitcoin crush #gold next year, when gold crushed Bitcoin this year?
— Peter Schiff (@PeterSchiff) December 6, 2022
“Why will Bitcoin crush gold next year if gold will crush Bitcoin this year?”, Schiff retorted.
The president of Euro Pacific Capital also commented on JPMorgan CEO Jamie Dimon’s remarks. On CNBC he criticised cryptocurrencies and compared tokens to pet rocks.
In Schiff’s view, such a comparison flatters digital assets, since pet rocks have some utility.
Today #JamieDimon compared #Bitcoin to pet rocks. But that is not really a fair comparison, as pet rocks actually have some utility. You can use one as a paper weight, a door stop, slingshot ammo, or to decorate the bottom of a fish tank. If you have three of them you can juggle.
— Peter Schiff (@PeterSchiff) December 6, 2022
“You can use it [the stone] as a paperweight, a doorstop, a slingshot projectile, or to decorate the bottom of a fish tank. If you have three of them you can juggle,” wrote the gold bug.
In response, he again faced a barrage of criticism on Twitter. One user asked how the value of a pet rock differs from the value of a lump of gold.
A rock can’t conduct electricity or be used to make beautiful jewelry. Gold is far more useful and scarce than rocks, therefore far more valuable. But rocks are still more useful and valuable than #Bitcoin.
— Peter Schiff (@PeterSchiff) December 6, 2022
“A rock can’t conduct electricity or be used to make beautiful jewelry. Gold is far more useful and scarcer than rocks, and therefore more valuable. But rocks are still more useful and valuable than Bitcoin,” Schiff explained.
Earlier, the president of Euro Pacific Capital had repeatedly warned of a substantial fall in Bitcoin. In early May he forecast a decline to $10,000 if the $30,000 level were decisively breached.
After the May 11 failure to hold that level, he suggested that Bitcoin test $8,000.
Digital gold traded near $30,000 for about another month before slipping below the $23,000 mark. In this context Schiff updated his Bitcoin bottom forecast, pointing to the $5,000 support level.
In November, Schiff said that the combined market capitalization of the two leading stablecoins — USDT and USDC — will exceed Bitcoin’s figure.
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