Economist and gold bug Peter Schiff says bitcoin still has a long way to fall after the collapse of crypto exchange FTX. He also believes that $10K is the real price of bitcoin, warning that “The lion’s share of the selling has not even started yet.”
Schiff predicts ‘Bitcoin still has a long way to go’
Gold bug and economist Peter Schiff has warned in a series of tweets that the price of bitcoin is headed for a significant drop from its current levels.
He began by referencing the forecast he made in June that the need to sell bitcoin to pay bills will only get worse as the recession deepens and long-term BTC holders without paychecks are forced to sell. Noting that it did not take long for his prediction to come true, Schiff tweeted Wednesday:
The lion’s share of sales haven’t even started yet. Bitcoin still has a long way to fall.
He added in a follow-up tweet: “I’ve been warning for years that all the people who made money in crypto will be sued by all the people who lost money in crypto. So lawyer up pumpers.”
Commenting on collapsed crypto exchange FTX and former CEO Sam Bankman-Fried (SBF), Schiff wrote: “I never even considered investing in FTX because I never looked into SBF. But if I spent ten minutes Had precautions been taken, the red flags would have been obvious.” He elaborated:
That many in crypto were so easily duped by an obvious conman calls into question their judgment on everything crypto.
Schiff Thinks $10K Is the Real Price of Bitcoin
Schiff also shared his thoughts on the recent performance of Grayscale’s Bitcoin Trust (GBTC) and its correlation to the price of bitcoin. The bitcoin skeptic wrote on Friday:
Based on GBTC’s 43% discount to NAV, bitcoin is already trading well below $10K. I think this is the real price of bitcoin, as when you sell GBTC you get paid real cash. But when you sell BTC you get paid tether. To get actual cash for bitcoin you must accept a huge discount.
“GBTC is trading at a 46% discount right now. new record. Something or the other is definitely happening. Bitcoin is in real trouble. Get out while you can!” added Gold Bug. At the time of writing, BTC is trading at $16,727.
Many people on Twitter disagreed with Schiff. One user opined: “This is just embarrassing. Imagine trashing BTC since it was $100, and all these years later, you still have no idea about any aspect of it.” Another wrote: “I have never got tether when I sold bitcoin. Also, the discount is because there are hedge funds that can only buy GBTC and not BTC that are getting trashed and have to raise whatever liquidity they can.”
Market analyst Joe Consorti pointed out on Twitter on Friday that GBTC has been dumped by institutions throughout the year and that its parent company Digital Currency Group (DCG) has taken the bag “to reduce institutional selling pressure and generate hype”. option is selected. The net asset value (NAV) of the fund. However, he added, “Still, that intervention has not widened the discount to -42.7% on the fund’s NAV.”
On Friday, Grayscale Investments shared information on the safety and security associated with its products. The asset management firm insisted that its products’ digital assets are safe and secure.