Steve Hanke believes that Bitcoin is most likely to go down after a major high, here’s why
Renowned Johns Hopkins University economist and crypto critic Steve Hanke believes that Bitcoin will suffer a steep fall, due to the well-established top-down law.
Meanwhile, another prominent Bitcoin hater, Peter Schiff, names possible circumstances in the future under which the US government may impose extra regulations against BTC and all other cryptos.
“What goes up must come down”
Prominent economist and Bitcoin opponent Hanke tweeted that the downsides of Bitcoin that will ultimately lower its price are “extreme volatility and speculative in nature.”
He believes in the universal law, according to which assets and ideas that go up fast, must come down eventually. According to his tweet, Bitcoin demonstrates that it is no exception to this law, as it is too volatile and speculative in nature.
This is not the first time Hanke has mentioned these “Bitcoin features” – last week, he also tweeted about Bitcoin being too volatile and speculative, adding that it is “susceptible to fraud and highly uncertain”.
According to his tweet, Bitcoin’s fundamental value is only zero.
Peter Schiff names “an excuse for more Bitcoin regulation” in the future
Another long-standing Bitcoin critic, CEO and CFO of the SchiffGold asset management fund, Peter Schiff has taken to Twitter to suggest that the US government not banning Bitcoin so far does not mean that this is a good sign.
The Schiff Gold Virus believes it is likely that many who buy Bitcoin now will ultimately wish the government to ban it. So far, he says, the administration of Biden prefers to introduce taxes on BTC and regulate it.
However, he adds, after the Bitcoin crash, US financial authorities are likely to use this crash as a pretext for additional and stricter regulations, apparently Schiff is referring to the usual reasons for regulating certain assets – to protect investors from them.
Whales accumulate $3.6 billion in BTC
In the meantime, on-chain analytics company Santiment spreads the word that ten days ago, crypto whales who hold from 100 to 10,000 BTC, purchased another 70,000 Bitcoins.
That’s a staggering $ 3,609,431,000 at the current BTC / USD rate of $ 51,516, according to market data website CoinMarketCap.
Santiment emphasized that this is the largest amount of BTC accumulated in one day since July 2019 and believe that this may have been one of the reasons that have pushed Bitcoin above the $51,000 level.
