LUCKNOW (CoinChapter.com) — Renowned gold bug Peter Schiff has once again sounded the alarm over a potential Bitcoin (BTC) price crash. In a recent post on X, Schiff expressed his skepticism towards the current market sentiment surrounding Bitcoin. He drew attention to previous bull market cycles, ultimately leading to price retracements.
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Peter Schiff’s warning comes as Bitcoin has retraced 12.9% from its all-time high of $73,737 on March 14. Schiff’s concerns stem from a recurring trend observed during market euphoria in 2011. At that time, Bitcoin proponents added laser eyes to their social media profiles to symbolize bullishness.
This trend, which Schiff deems “cringe-worthy,” gained widespread popularity during the bull market. Even high-profile figures such as celebrities and politicians like Wyoming Senator Cynthia Lummis got involved in the trend.
However, the excitement around the bullish market was short-lived. The Bitcoin price ultimately crashed back to $16,000 by November 2022.
Doubts Over Spot ETF Inflows and Bitcoin Halving Impact
Schiff’s skepticism extends beyond the laser eyes trend. Since their launch in January, he also doubted the sustainability of the record-breaking inflows into spot Bitcoin ETFs. The gold proponent believes this streak of inflows will not last, and Bitcoin will experience a sharp price decline after recording substantial gains in 2024.
Moreover, Peter Schiff has downplayed the impact of the highly anticipated Bitcoin halving event. Many analysts predict this event could be a bullish cryptocurrency price catalyst. However, Schiff prediction does not align with this.
Schiff’s Contradictory Comments on Bitcoin’s Potential
However, in February 2024, on Anthony Pompliano’s podcast, Schiff admitted Bitcoin could potentially rally to $100,000 or more from current levels of around $50,000. “But I don’t even think it’s worth betting on it because it’s not that big of a rise,” he said, arguing the upside is limited after Bitcoin went sideways for three years after nearly hitting $70,000 in 2021.
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Schiff maintained his skeptical stance, calling Bitcoin a gamble rather than a “safe haven, low volatile store of value asset.” He promoted gold and stocks as better investments with intrinsic value that can generate dividends or have industrial uses.
While not ruling out Bitcoin one day hitting $1 million or even $10 million, Peter Schiff caveated that would likely require a hyperinflation scenario where “millionaires in Venezuela or Zimbabwe can’t buy anything” with their devalued fiat currency.
Bitcoin’s Recent Rally and Market Sentiment
These comments came as Bitcoin rallied nearly 25% in February amid hopes that newly approved spot ETFs could drive fresh investment demand. The crypto surpassed $50,000 for the first time since late 2021.
However, Schiff argues the only way for Bitcoin to sustain higher prices is if enough new buyers keep piling in. “If you own it, you need to get many friends or colleagues to buy it because that’s the only way its price goes up,” he stated.
So, while allowing Bitcoin to spike to $100,000 or more temporarily, the veteran investor remains deeply skeptical about its long-term viability and value proposition compared to traditional assets like gold.
Despite Bitcoin’s recent price drop, the Crypto Fear and Greed Index still shows extreme greed at 79.
Bitcoin trades at $64,410 after losing 5.5% in value over the last 24 hours. Additionally, data from CoinGlass indicates that roughly $442 million worth of long positions have been liquidated during the same period.
