Famous gold advocate Peter Schiff, through his personal account on social media platform X, issued a striking warning about a potential major collapse in the price of Bitcoin (BTC). Despite Bitcoin‘s current price drop of over 10% from its all-time high of $73,737 reached on March 14th, Schiff foresees an even steeper decline.
Foreseeing a Downturn
Schiff drew parallels to a trend observed in 2011, which many Bitcoin enthusiasts highlighted by adorning their social media profiles with laser eyes to indicate the market’s extreme bullishness. Historical trends show that market behavior reaching points of exuberance often precedes significant crashes, serving as a cautionary tale against the excessive euphoria in the cryptocurrency market.
The gold advocate also voiced his skepticism about the success of spot Bitcoin exchange-traded funds (ETFs), which have attracted significant interest since their launch earlier this year. Schiff suggested that the current record influx into these ETFs might not be sustainable and could potentially lead to a reversal in Bitcoin’s upward trend.
Despite widespread expectations surrounding the upcoming 4th Bitcoin block reward halving, an event historically seen as a bullish catalyst for the largest cryptocurrency, Schiff continues to downplay its impact. Contrary to Schiff, many analysts anticipate the block reward halving to inject new momentum into Bitcoin’s price, while the renowned gold advocate remains unconvinced of its significance.
Current Bitcoin Situation
The market sentiment measured by the Crypto Fear and Greed Index remains in the “extreme greed” zone at a level of 79, despite Bitcoin’s recent pullback. This suggests that investors are still overly optimistic about the future of the largest cryptocurrency and signals the potential for more volatility ahead.
As of the writing of this article, BTC is trading at $64,410, down 5.5% in the last 24 hours. According to data from CoinGlass, the sharp market decline led to the liquidation of approximately $442 million worth of long positions during the same time frame.
