Peter Schiff, a prominent supporter of gold, has issued a dire warning for Bitcoin holders, stating that the digital currency is at risk of losing crucial technical price support. In a tweet, Schiff stated that if Bitcoin’s price drops below $60,000, it could face a significant decline. He further added that while experienced Bitcoin investors are accustomed to such drops, newbies who own exchange-traded funds (ETFs) are in for a rude awakening.
The launch of Bitcoin spot ETFs earlier this year has contributed to a 128% increase in the digital currency’s price over the past year. However, ETF flows have stagnated in recent weeks, with Bitcoin trading within a range of $60,000 to $70,000. The volatility in the stock market, driven by geopolitical tensions in the Middle East, has also impacted the crypto market.
James Check, a lead analyst at Glassnode, shares Schiff’s concerns and believes that if Bitcoin’s price falls below $58,800, the market could become “top-heavy.” This price level represents the entry point for many recent Bitcoin buyers, and if it is breached, panic selling may occur. Despite this, Check still expects the short-term holder cost basis to act as a support level.
Schiff’s negative stance on Bitcoin is nothing new, and he has been criticized by crypto enthusiasts for years. He argues that Bitcoin lacks a non-monetary use case, unlike gold, which can be used in various industries. However, following the recent Bitcoin halving, which reduced the digital currency’s inflation rate below that of gold, some argue that Bitcoin is a better store of value. Schiff remains skeptical and believes that Bitcoin holders will experience a significant decline in their net worth.