Peter Schiff, an economist and skeptic on Bitcoin (BTC), has argued that the major cryptocurrency is in line with a prolonged crash even though it appears to be consolidating around the $20,000 level.
According to Schiff, part of the market believes that price action is part of the recovery, although Bitcoin has managed to recover somewhat after crashing to around $18,000, but he described it as a “false sense of security” during an interview with Schiff. Natalie Brunel On October 4th.
“Bitcoin has been trending sideways since it crashed below $20,000, but it hasn’t gone up. There are a lot selling around $20,000. There are still some people trying to buy it around that level as well, so you kind of have a fight going on between people trying to buy it, just below of $20,000, and those who want to sell it for more than $20,000 but don’t let that tempt you with a false sense of security.”
Moreover, the economist confirmed that Bitcoin is on the verge of falling to zero, suggesting that investors should treat it as a false hope despite the consolidation.
Bitcoin could reach $5000
During his predictions, Schiff noted that bitcoin will likely go to $10,000 and then $5,000, and emphasized that institutions are no longer entering bitcoin while calling the asset a scam.
“But the bottom is going to come out of this market, just because it’s paused lower, you know that’s what bear markets do. They kind of trap you in there. They’re trying to give you a false sense of hope that the lows are up, and then we get another big leg ‘And you know we’re probably going to spend a lot of time around $10,000,’ he added.
Bitcoin’s position as a store of value
Finally, given Bitcoin’s massive collapse from a record low of around $68,000, Schiff questioned the asset’s standing as a store of value while challenging investors to pick other assets like gold and the dollar.
Meanwhile, he noted that the biggest gainers in Bitcoin are sellers, describing buyers as losers. Earlier, Schiff challenged Bitcoin holders to sell the asset after it temporarily gained in what he described as a “sudden rally”.
See the full interview below:
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Crypto skeptic Peter Schiff says that trading bitcoin sideways to $20,000 is a “false sense of security” that first appeared on Coinphony.