Peter Schiff has expressed his skepticism about the most popular cryptocurrency. On Wednesday, he issued a stern warning to Bitcoin supporters, saying that the digital asset is close to losing significant and uncertain technical price support.
The popular economist and financial commentator tweeted that there is “a long way down” if Bitcoin’s price falls below $60,000 again.
Can Bitcoin stay above $60,000?
“It doesn’t look good for HODLers,” Schiff wrote. “All keen Bitcoin holders are used to big drops. But newcomers who own ETFs are in for a brutal wake-up call.”
The excitement preceding the launch of Bitcoin ETFs in January, along with their actual launch, has helped push the price of Bitcoin up 128% over the past year. The ETFs alone have seen net flows of $12.2 billion since launch.
However, ETF flows have stagnated over the past month, while Bitcoin’s price has mostly fluctuated in the $60,000 to $70,000 range. Stock market volatility caused by geopolitical instability in the Middle East has also affected the cryptocurrency market.
Like Schiff, Glassnode chief analyst James Check said last week that the Bitcoin market could become “the heaviest” if the price falls below $58,800. That level represents the “short-term holder cost base” – the entry point for many recent Bitcoin buyers and the point at which they will panic and sell if that price is lost.
“If we assume that this is a sustained upward trend, we should expect the short-term holder cost base to remain in the $58,000 to $59,000range,” he said at the time.
Peter Schiff: Bitcoin hatred continues
Schiff has rarely spoken positively about Bitcoin, which has prompted crypto bulls to mock the investor over the years. He argues that Bitcoin cannot be used as money because it has no non-monetary use, unlike gold, which can be used for jewelry and industrial purposes.
After last week’s halving of Bitcoin, the digital asset’s inflation rate has fallen far below that of gold, arguably making it a better store of value for holders than the precious metal.
Schiff, however, expressed skepticism, as always. “I think halving is an appropriate name for what happens as soon as HODL #Bitcoin holders experience a halving of their net wealth,” he said.
