Peter Schiff, an economist and staunch supporter of gold, has issued a stark warning about the future of Bitcoin and Ethereum amidst current market uncertainties. He believes the ongoing bear market for these cryptocurrencies has yet to reach its nadir, forecasting substantial declines ahead.
Schiff’s concerns were voiced on X, where he highlighted Bitcoin’s recent downturn, noting it had fallen sharply to $53,550, representing a 27.5% drop from its peak in U.S. dollars and a 38.5% decline when valued against gold. He expressed serious apprehension, stating unequivocally, “This bear market is far from its conclusion.”
Pointing to a Bitcoin price chart, Schiff underscored the critical nature of current support levels. He stressed that failure to maintain these levels could precipitate significant further declines, cautioning, “If it doesn’t hold, brace for impact. We’re looking at a substantial downward trajectory.”
Addressing the reasons behind Bitcoin’s decline, Schiff attributed part of it to the selling pressure resulting from Mt. Gox repayment obligations. He argued that this situation exposed what he termed “the fallacy of institutional demand,” positing that genuine institutional demand would have absorbed Mt. Gox’s Bitcoin supply readily.
Schiff also commented on the status of spot Bitcoin exchange-traded funds (ETFs), observing that despite the downturn, ETF holders appeared resilient, showing no signs of panic selling yet. He predicted that it might take a more significant Bitcoin drop to induce capitulation among these holders, possibly as early as the upcoming week following another major sell-off over the weekend.
Turning his attention to Ethereum, Schiff predicted a similar downward trajectory, noting it had breached crucial support levels and was now trading below $2,900, marking a 30% decline from its high in March. He ominously predicted, “I anticipate a plunge to $1,500. It appears those who bought into the Ethereum ETF rumors were impatient to see reality unfold.”
As of the latest updates, Bitcoin is trading at $57,028, while Ethereum stands at $3,015.
What are your thoughts on Peter Schiff’s somber predictions for Bitcoin and Ethereum? Share your opinions in the comments section below.
