American libertarian, stockbroker, financial commentator and CEO of Chief Global Strategist of Euro Pacific Capital Inc., Peter Schiff made a tweet on Thursday, November 8, 2019 indicating that the giant crypto is expected to witness a dump.
In particular, he said:
It looks like the #Bitcoin pump is finally over. Get ready for the dump!
— Peter Schiff (@PeterSchiff) November 8, 2019
In response to the comment made, Twitter user, @Rhythmtrader poked fun at the CEO by giving an example of a 25% dump forcing the giant to drop from a futuristic value of $100,000 to $75,000. To which Schiff simply replied: “Keep dreaming. Bitcoin is never going to hit $100,000!”
Schiff’s Reasons for a Possible Failing Bitcoin:
It seems like Schiff isn’t all that convinced by Bitcoin given his experience with gold. He seems to have noted in the comments that gold actually has value, evidently indicating that Bitcoin doesn’t. It seems like he too was one of the fewest financial commentators to have forecasted the 2008 financial crisis. That said, he seems confident in his statements regarding Bitcoin, why might this be?
News outlet, Ethereum World News also reported on this matter, expounding on Schiff’s reasons for his proposed Bitcoin dump. The first argument the stockbroker makes is that the BTC chart looks bearish, emphasizing that it “looks horrible”. He expects the giant to drop by 25 percent from its current value to $6,000. He also thinks that the drop can be as bad as the $2,000 ranges.
The next reasoning involves manipulation. Schiff supposedly argued that there’s BTC hodlers hoping to one day make some wealth, while there’s whales on the other end who “get rich by selling now to realize their paper gains before a market crash.” He emphasized that the faith in the market rests in the hands of the whales, who only fulfill wishes so that they can make money from it.
At the time of writing, BTC’s value sits at roughly USD$8,800, which has fallen from USD$9300 in a week’s time. It seems like a downward trend can be expected. As per U Today, Market Analyst, Jim Wyckoff also expects ‘another price move due to the collapse in volatility,’ but this is expected to be a short-term concern.
What are your thoughts regarding the arguments made by Schiff, especially in relation to whales possibly keeping the giant up and having the decision-making power?