Peter Schiff is Pulling his Best Hat Tricks in Saying Bitcoin Price Will Tank When Holders Cash Out
- Bitcoin could crash if holders decide to sell their digital assets
- Bitcoin surpassed $11,100 a few days ago reaching new highs this year
Bitcoin (BTC) has been growing during the last few months. The virtual currency has reached new highs in more than a year and many investors are very excited about the future of the space. The digital currency surpassed $11,100 and bulls remain excited about the future of the space. However, Peter Schiff, the CEO of Euro Pacific Capital, mentioned that once holders decide to sell their funds, the price of Bitcoin could collapse.
Bitcoin Could Fall If Holders Sell
Peter Schiff warned Bitcoin investors that the market could eventually fall if long-term holders decide to sell their digital currencies. This is very important to know in a moment in which investors are expecting the market to keep growing.
Mr. Schiff explained that it does not matter how high the price of Bitcoin rises unless users sell their funds. Buyers have to realize any benefit from the rise if they want to enjoy their investments. If holders decide to cash out, price collapses and it affects users that didn’t sell.
It doesn't matter how high the price of Bitcoin rises unless you sell. Every buyer must eventually sell to realize any benefit from the rise. But therein lies the problem. Once hodlers decide to cash out, the price collapses, wiping out paper gains before they can be realized!
— Peter Schiff (@PeterSchiff) June 22, 2019
Several users have answered him saying that this is true for almost every asset that is currently traded, including stocks and gold. For example, Erik Voorhees, a recognized Bitcoin investor mentioned that Schiff theory could also be applied to gold.
Peter Schiff has also mentioned that other assets such as stocks pay dividends, bonds paid interest and real estate pay rents. Meanwhile, users purchasing Bitcoin and holding it as an investment have to sell it to realize some profits.
Currently, Bitcoin is being traded around $10,860 and it has a market capitalization of $193 billion. This price increase came after the digital currency surpassed $11,100 a few days ago. There are some analysts such as Thomas Lee or Peter Brandt that consider that Bitcoin could surge and surpass $40,000 before the end of this year or eventually reach $100,000, as Peter Brandt commented.