Bitcoin critic Peter Schiff explains why LUNA confuses the concept of buying the dip for crypto overall
Euro Pacific Capital CEO and gold investor Peter Schiff took to Twitter to comment on LUNA’s recent crash to zero.
He has likened Bitcoin to Terra and said that LUNA has compromised the “buy the dip” concept for the whole cryptocurrency market.
“It can happen to any crypto”
Schiff tweeted that the case of Terra’s LUNA and its stablecoin, UST, which recently lost peg (and Terra’s blockchain was shut down) provided a prime example of why investors shouldn’t buy the drop in cryptocurrencies.
He pointed out that on May 12, LUNA plunged 98% from its recent peak of $116. He addressed the tweet to those who rushed to buy LUNA on the dip and lost another 99.3% earlier today.
This can be the case with any digital currency, he tweeted, including Bitcoin.
Schiff likens Bitcoin to LUNA
While replying to a comment from a Twitter user, Schiff mentioned that things for LUNA have changed, almost instantly becoming as bad as possible. The same may well happen to Bitcoin, he added, since the concept here is the same; this week people like Bitcoin and “next week they may not.”
Bitcoin recovers after losing $31,750
The collapse of Terra’s stablecoin, UST, and its native token, LUNA, pushed the flagship cryptocurrency, Bitcoin, lower. On May 12, BTC fell 17.31%, reaching a low of $26,250.
By now, the digital gold has been up by 15.61% and is changing hands at $30,272.
Earlier this year, Schiff tweeted that he expected Bitcoin to drop below $10,000 if it fell significantly below the $30,000 level.
