‘Bitcoin Will Crash’: Schiff’s Grim Prediction

With a pessimistic new forecast, Peter Schiff, a longtime opponent of Bitcoin and supporter of gold, has stirred up controversy in the financial community. According to Schiff’s most recent comments, Bitcoin pumpers and their “paid shills” on CNBC are making a big deal about Bitcoin’s resiliency, as it has not dropped as much as the NASDAQ lately. However, that is only because investors are hoping it will eventually follow gold. Bitcoin will crash when people sell because they are fed up with waiting.

This assertion is being made during a time when Bitcoin is reasonably stable. The digital asset is currently trading at about $84,000, gaining some ground above important moving averages such as the 200 EMA. Nonetheless, momentum has been slowing down in recent sessions, and resistance around the $87,000 mark is still strong. 

Related

Technical indicators indicate that the market is not totally bearish despite the short-term hesitancy; the RSI is still neutral and volume is holding steady. However, in the long run, Schiff’s story is at odds with reality. In the past five to fourteen years, Bitcoin has significantly outperformed the S&P 500 and gold. Bitcoin has surpassed both gold’s +116% and the S&P 500’s +306% gains over the last 14 years with an astounding +7.2 million percent return. 

Bitcoin recorded more than 1,100% returns even in the 5- to 10-year time frames, demonstrating its growth potential and resilience in the face of severe volatility. Schiff’s criticism does, however, represent a growing trend among cautious investors. In contrast to its initial explosive rise, Bitcoin’s performance has started to level off in recent years. 

This stabilization has been facilitated by institutional interest, market maturity and more regulation; these factors may have lessened the initial appeal of wild gains to investors. The story of cryptocurrency is still more compelling than ever, though. Bitcoin is far from finished, as evidenced by impending halving events and growing adoption. As short-term corrections are always possible and stories like Schiff’s could intensify any downward trend, it might be wise to try and avoid overextension on the current market.