In the realm of cryptocurrency, economist and staunch proponent of gold, Peter Schiff, issues a stern warning of a prolonged downturn in the value of bitcoin, asserting that "we are far from the end of this bear market." He foresees substantial price plunges for both bitcoin and ethereum, hinting at a potential market collapse should crucial support thresholds falter. "The descent ahead is substantial," he remarked. Schiff further prognosticated regarding ether, stating, "I anticipate a descent to $1,500 on the horizon."
Peter Schiff Anticipates Ongoing Decline in Bitcoin and Ether Amidst Market Ambiguity
Renowned economist and gold enthusiast Peter Schiff has been actively discussing bitcoin on the social media platform X in recent days. On a recent Friday, he highlighted that bitcoin had touched a low of $53,550, marking a 27.5% decline from its peak in U.S. dollars and a 38.5% fall when evaluated in terms of gold. Schiff provided a cautionary statement:
"This bear market has a long way to go."
Backing his assertion with a bitcoin price graph, he stressed the significance of the cryptocurrency being "at a critical support level," and expressed concern about a potential significant downturn if this support fails to hold. "Should it falter, brace for impact. The fall will be considerable," he cautioned.
On a following Saturday, Schiff attributed the downturn in bitcoin partially to sales related to the Mt. Gox repayments, but he also contended that it highlighted "the fallacy of institutional demand." He argued, "Had such demand truly existed, buyers would have eagerly seized the opportunity to acquire the Mt. Gox Bitcoin off the market."
Schiff also scrutinized spot bitcoin exchange-traded funds (ETFs), suggesting that although holders of bitcoin ETFs are holding onto their positions, no signs of panic are evident yet. Referring to the trading activity, he observed, "It appears that holders of bitcoin ETFs are still holding firm. Thus far, there are no indications of panic. We may witness a significant dip in bitcoin prices before these holders finally surrender. This could materialize as soon as next week, particularly following another substantial sell-off this weekend," he opined on X the preceding Friday.
The gold advocate did not confine his pessimistic forecasts to bitcoin alone; he also envisaged a decline in the value of ether (ETH). On the mentioned Friday, he remarked, "Ethereum is currently breaching crucial support levels. It is trading beneath $2,900, marking a 30% decline from its peak in March." He concluded:
"I foresee a nosedive to $1,500 forthcoming. It seems that those who hurriedly bought into the speculations surrounding the ether ETF could not withstand awaiting concrete developments."
At the time of this piece, bitcoin is being transacted at $57,028, while ether's value stands at $3,015.
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