Peter Schiff: Whale Tactics are to Blame after Bitcoin Rises 30% Over Gold Pre-Crypto Market Crash
Peter Schiff, a HODLer of gold, has said that investors are suffering because of the whales' tactics that are employed on digital currencies markets.
On a tweet posted on Oct. 29, this is what the diehard gold investor had to say,
Bitcoin hodlers won't sell as they believe they'll get rich when #Bitcoin moons. Bitcoin whales get rich by selling now to realize their paper gains before a market crash wipes them out. The whales must make sure the hodlers don't lose faith and cash out so that they can cash in!
— Peter Schiff (@PeterSchiff) October 29, 2019
Gold is crashing
Schiff's comments were made just a week after the top digital coin prices rose to their highest. Bitcoin had its all-time intraday high at 42%, since 2011. When Bitcoin was traded against gold, it was observed to be up by more than 30% on Oct. 26.
Response from Twitter was that the pattern was unique to cryptocurrency assets; others commented sarcastically that only gold is not deterred by such trading tactics for Schiff.
Gold has been dropping amid the investor's words, and many investors are still anticipating for the China-United States deal to go through. An interest rate reduction from the United States Federal Reserve could be drastic to gold as the opportunity costs for the holders would go down.
It has been reported that Schiff has been consistently and resoundingly cynical when it comes to the future of Bitcoin. Recognizing Bitcoin as a safe asset has brought about its nickname “Digital gold.” The digital asset has even fallen into close association with the physical gold more frequently. The two have almost crossed paths on several occasions in recent market sequences.
The cryptocurrency commentators have said that the increasingly agitated matter of central bank policy is just a strategy to boost the price performance of Bitcoin.