Bitcoin (BTC) Bear Market Here, Warns Peter Schiff, and Here’s Why

As a seasoned investor with over three decades of experience under my belt, I’ve seen my fair share of market cycles and trends. Peter Schiff’s latest warning about Bitcoin’s bear market is not new to me; it’s almost like hearing a broken record. While his analysis has some merit, I tend to take it with a grain of salt, given his long-standing skepticism towards the digital asset.


Known critic of Bitcoin, Peter Schiff, has sounded the alarm again, predicting a bear market for the digital asset. He points out that Bitcoin’s performance against gold has been dismal, with its value decreasing approximately 40% since its peak more than two years ago.

Schiff directly advises HODLers: The persistent challenges Bitcoin faces might suggest that investors aren’t fully grasping the current market conditions. According to Schiff, although Bitcoin currently hovers above the critical $60,000 support point, this is likely a short-term respite.

Bitcoin (BTC) Bear Market Here, Warns Peter Schiff, and Here's Why

According to Schiff, Bitcoin‘s vulnerability compared to gold is increasingly apparent under current global economic conditions that heavily impact risky assets such as Bitcoin. Yet, data from Glassnode presents a more nuanced perspective on Bitcoin’s latest market trends.

Approximately 4-5% of Bitcoin’s net capital influx since early January can be traced back to U.S. spot ETFs. Since the cost basis of these ETFs ranges between $54,900 and $59,100, many institutional investors who initially invested in these funds are now nearing the break-even psychological point where their investment value equals the original purchase price.

There’s a possibility that some investors might decide to sell Bitcoin if its price drops to certain levels, which could create a less stable image for Bitcoin. Despite the fact that the $60,000 support has remained steady thus far, Schiff suggests reconsidering bullish investments. The overall trend remains uncertain at this point.

The pivotal points to keep an eye on are $59,000 below and $64,000 above. Bitcoin may enter even more bearish territory if it breaks below $59,000, but a rise above $64,000 might rekindle optimism for a wider rebound. As the saying goes, time is the best tool to determine who needs you the most, and only time will tell if anyone truly needs Bitcoin. 

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2024-10-04 11:49