Bitcoin is unlikely to make new highs beyond $69,000 again, and in fact, will continue falling to $10,000 and below, according to Peter Schiff, chief market strategist of Euro Pacific Asset Management.
Calling it a “sucker’s rally,” Schiff told David Lin, Anchor for Kitco News, that the rally in the crypto markets, including Ethereum’s 70% gains since early July, is not sustainable.
“The market is going to plunge. I think people should take advantage rally they’ve got right now and get out. A lot of people still have profits in these tokens. People bought Bitcoin four, five, six years ago, and they have big profits. Same thing with Ethereum. People should get out, because otherwise the market’s going to take those profits,” he said.
Schiff doubled down on his earlier claims that the crypto market is in a “bubble”, despite Bitcoin already having fallen 65% from its highs.
“At the end of the day, the only people that are going to walk away from this crypto bubble with anything to show for it are the people who sold,” he said.
Schiff said that the selloff in the crypto markets this year reflected a massive “pump and dump”.
“You had celebrities, whether it was athletes or entertainers, signing on to promote this coin or that coin out there to their Instagram followers or whatever they were doing. It was a massive pump, but people are overlooking the dump,” he said.
Schiff Tweeted on August 3, 2022, that “On @CNBC @saylor boasted that MSTR’s investment in #Bitcoin was “a screaming home run for shareholders.” $MSTR is currently down about $1 billion on its Bitcoin investment. If Saylor considers that huge loss a screaming home run, I’d hate to see what he considers a strike out.”
“I think it’s really ridiculous that [Michael Saylor, CEO of MicroStrategy] he’s still claiming that this investment was a success. What he’s doing is he’s looking back at what Bitcoin was when they bought the first Bitcoin. It’s like well, we’re making money on our first purchase, but you can’t cherry pick your first purchase, what about all the other purchases that were higher up? You can’t do that, you’ve got to look at the totality and add up all your purchases. Are you ahead or behind? And they’re way behind,” he said.
Schiff said that MicroStrategy stock is “overvalued.”
“Eventually, the price of MicroStrategy shares is going to crash and it’s going to be way below where it was when they first started to buy Bitcoin,” he said.
For more information on the current Bitcoin bubble, watch the video above.
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