Peter Schiff: Everything is ready for a Bitcoin crash
Crypto skeptic Peter Schiff warned of a possible collapse of Bitcoin and the stock market.
He pointed to the need for the Fed to cut rates to prevent a recession.
If Bitcoin falls below $15,000, it will become “one of the worst performing assets in the world,” Schiff said.
Euro Pacific Capital President Peter Schiff, who has repeatedly criticized Bitcoin, made a new statement regarding the first cryptocurrency. He warned that Bitcoin is on the verge of a deep recession.
The expert started with stock market analytics. He reported that on July 24, 2024, the S&P 500 and NASDAQ indices closed at multi-week lows amid falling shares of Tesla and Alphabet.
Schiff noted the growth of the Japanese yen and the Swiss franc. As a rule, these are currencies with a stable exchange rate, into which assets are transferred during economic and political instability.
“If the Fed does not cut rates soon, the recession will begin with a prolonged decline in the stock market,” wrote the president of Euro Pacific Capital.
Let us remember that in June 2024, US senators called on Fed Chairman Jerome Powell to lower the interest rate. Lawmakers believe that tightening the regulator's policies threatens a recession.
Next, Peter Schiff moved on to gold and silver prices, which also fell about 2% over the past 24 hours. According to the expert, the precious metals market is also preparing for a “hard landing.”
In turn, the price of Bitcoin corrected to $63,800, and the Ethereum rate collapsed by 8%, despite the official launch of trading in spot Ethereum-ETFs in the United States.
“The stage is set for a Bitcoin crash just ahead of the Bitcoin 2024 conference in Nashville,” Peter Schiff warned.
The expert also conducted a survey among his subscribers on X (formerly Twitter). Schiff simulated a situation in which Bitcoin falls by 80% of its current price and trades below $15,000.
He asked long-term investors what they would do if the first cryptocurrency capitulates - sell it or continue to hold it in their wallets.
According to the survey, 89% of Schiff's subscribers said that they do not intend to sell Bitcoin even if the asset falls significantly.
“89% of hodlers remained true to their opinion. If this happens in 2025, Bitcoin's eight-year track record will be terrible. In fact, it will become one of the worst performing assets in the world,” the analyst said.
One user countered that Bitcoin will still outperform gold in the long term. Compared to the precious metal, the first cryptocurrency has only been around for 15 years and has a long way to go, the report said.
Michael Saylor: Bitcoin will absorb gold and take funds away from other assets
Let us remember that Peter Schiff repeatedly criticized the first cryptocurrency and suggested investing in other assets. In November 2023, he predicted a Bitcoin crash ahead of the launch of spot ETFs, calling it a “pure pyramid scheme” and a scam.
Meanwhile, in May 2024, a cryptoskeptic allowed Bitcoin to rise to $1 million and above under certain conditions.
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