Gold advocate and economist Peter Schiff has once again brought attention to the recent decline of bitcoin, stating that the cryptocurrency is now back in "official bear market territory." He anticipates further price drops for bitcoin before Mt. Gox creditors begin receiving their crypto payouts next month.
Schiff, known for his skepticism towards bitcoin, took to the social media platform X to express his concerns about the cryptocurrency's recent performance. As the price of bitcoin briefly fell below $59K, Schiff pointed out that it had dropped over 20% from its record high, indicating that it is now officially in a bear market. He also highlighted that when priced in gold, bitcoin has experienced a decline of over 30%, suggesting that the bear market is still in its early stages.
In addition to his observations about the current state of bitcoin, Schiff also warned about the potential impact of Mt. Gox creditors receiving their bitcoin. With the announcement that distributions will commence in July, Schiff believes that this could lead to further drops in the price of bitcoin as the Mt. Gox bitcoin hits the market.
Schiff also commented on spot bitcoin exchange-traded funds (ETFs), noting that despite the buying activity from 11 spot bitcoin ETFs since March 14th, the price of bitcoin has decreased by 14%. In contrast, gold has seen a 10% increase during the same period. Schiff suggested that investors who purchased bitcoin ETFs may have sold their gold ETFs to fund their bitcoin investments and are now experiencing a loss of 24%.
Known for his bold predictions, Schiff has consistently expressed his skepticism about the future of bitcoin. In May, he warned that the introduction of spot ethereum ETFs could lead to a shift of funds from bitcoin to ether, potentially reducing bitcoin's market dominance. In April, he went as far as declaring that the bitcoin trend is over, describing it as a "gigantic bubble."
What are your thoughts on Peter Schiff's warnings about bitcoin? Do you anticipate a significant drop in the price of bitcoin before Mt. Gox's distribution? Share your opinions in the comments section below.