LUCKNOW (CoinChapter.com) — Renowned gold bullion Peter Schiff has once again warned of a possible Bitcoin (BTC) price crash. In a recent post on X, Schiff expressed skepticism about the current market sentiment surrounding Bitcoin. He noted previous bull market cycles that ultimately led to price retracements.
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Peter Schiff’s warning comes as Bitcoin is down 12.9% from its all-time high of $73,737 on March 14. Schiff’s concerns stem from a repeating trend observed during the 2011 market euphoria. At the time, Bitcoin supporters added laser eyes to their social media profiles. It symbolizes strength.
This trend, which Schiff deems “absolutely valuable,” has become widely popular during bull markets. Celebrities and politicians, such as Wyoming State Senator Cynthia Lummis, have also joined the trend.
But the excitement surrounding the bull market was short-lived. The price of Bitcoin eventually plummeted to $16,000 by November 2022.
Spot ETF Inflows and Doubts About Bitcoin Halving Impact
Schiff’s skepticism extends beyond the laser eye trend. He also questioned the sustainability of record inflows into the spot Bitcoin ETF since its launch in January. Gold supporters believe that this continuous inflow will not last and that Bitcoin will experience a sharp price decline after recording significant gains in 2024.
Moreover, Peter Schiff downplayed the impact of the highly anticipated Bitcoin halving event. Many analysts predict that this incident could be a catalyst for a rise in cryptocurrency prices. However, the Schiff prediction does not match this.
However, on Anthony Pompliano’s podcast in February 2024, Schiff admitted that Bitcoin had the potential to rise from its current level of around $50,000 to over $100,000. “But I don’t think it’s even worth betting on because it’s not that much of an upside,” he said, arguing that Bitcoin’s upside is limited after three years of sideways trading after reaching nearly $70,000 in 2021.
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Schiff remained skeptical of Bitcoin, calling it a gamble rather than a “safe haven and low-volatility store of value.” He promoted gold and stocks as better investments with intrinsic value that could generate dividends or have industrial uses.
Peter Schiff doesn’t rule out the possibility of Bitcoin reaching $1 million or even $10 million someday, but says it would likely require a hyperinflationary scenario where “millionaires in Venezuela or Zimbabwe can’t buy anything” with the devalued fiat currency. I warned you.
Bitcoin’s Recent Rebound and Market Sentiment
The comments come as Bitcoin rose nearly 25% in February amid hopes that newly approved spot ETFs could generate new investment demand. The cryptocurrency surpassed $50,000 for the first time since late 2021.
But Schiff argues that the only way Bitcoin can maintain higher prices is if it continues to attract enough new buyers. “If you own Bitcoin, make sure you have a lot of friends or colleagues who can buy it, because that’s the only way the price will go up.” he said
So while veteran investors have allowed Bitcoin to briefly soar above $100,000, they remain skeptical about Bitcoin’s long-term viability and value proposition compared to traditional assets like gold.
Despite the recent decline in Bitcoin price, the cryptocurrency fear and greed index still stands at 79, showing extreme greed.
Bitcoin trades at $64,410 after losing 5.5% in value over the past 24 hours. Additionally, approximately $442 million worth of long positions were liquidated during the same period, according to data from CoinGlass.