Staunch Bitcoin critic Peter Schiff has called on crypto hodlers to dump their BTC holdings before it’s too late.
Speaking to Kitco news, he described bitcoin fanatics as “living in their own bubble” and a “state of delusion”. He further predicted Bitcoin going below $10,000 or worse, stating that it would never recapture its all-time high.
“I think Bitcoin topped out at $69,000…the next big move for Bitcoin is gonna be low $10,000,” Schiff told Kitco’s, David Lin. “People paid $ 50,000- $60,000 dollars for Bitcoin but they now have big losses of $23,000-$ 24,000 dollars,”
Schiff further claimed that Bitcoin has margin calls yet to be made. Once they are made, investors will be prompted to sell, pushing prices lower, leaving devoted investors holding their bags and institutions that got fooled into buying Bitcoin in regret.
“People are going to throw in the towel, and the market is going to plunge…I think people should take advantage of the sucker rally they’ve got right now and get out, I mean a lot of people still have profits.” Shiff added.
In 2021 the crypto verse was awash with enormous hype flowing from numerous adverts on mainstream media, celebrities signing on to promote various coins, the NFT craze, promotional conferences and two countries adopting Bitcoin as legal tender. According to Schiff, this was was just a massive pump with people overlooking the dump. “Who then was behind the ‘pump and dump scheme? …The people who were doing the hyping were the ones doing the selling,” he went on to say.
Since May, the crypto market embarked on a bloody sell-off following the Terra-induced stablecoin de-peg and the DeFi sector meltdown, with most high-flying promotions going underwater.
In June, MicroStrategy posted over a $1.2 billion loss on its Bitcoin stash. Last month, Tesla, another bitcoin holding company, was forced to dump 75% of its holdings. Elon Musk said he had a “super bad feeling” about the economy.
Nevertheless, despite Schiff’s warning for Bitcoin and crypto investors, he is not having a good time with the banks either. The money manager has recently agreed to liquidate his Euro Pacific Bank in Puerto Rico and return 100% of customers’ deposits and pay a hefty fine. This comes after authorities cited “serious insolvency issues”, putting the bank’s operations on hold in June. Last month, Schiff disclosed that he was ready to accept Bitcoin if the authorities allowed him to sell the bank.