Bitcoin Detractor predictions are in the offing, should you be worried?
Peter Schiff is a longtime bitcoin naysayer and has not been shy about sharing these views. But as the saying goes that even a broken clock strikes the correct time twice a day, Schiff’s predictions also came true in front of investors. The economist warned about the crash and had published that, in the most recent, Bitcoin will most likely reach $20,000 and Ethereum will fall to $1,000.
Both predictions have turned out very well recently. Since Bitcoin only fell a few dollars above $20,000, so did Ethereum. These predictions have sparked speculation that Schiff’s other predictions for the digital asset may be accurate.
Earlier this week, The Economist published a tweet warning that the two major digital assets were about to crash. This prediction would turn out to be accurate as, on Friday, bitcoin fell more than 30% along with Ethereum, which suffered even more losses. Schiff correctly predicted that the bitcoin price would drop to $20,000 and on Wednesday its value was as low as $20,050.
Although prices have not reached exactly the point predicted by the economist, there is no denying that they have come close enough for the forecast to be taken seriously. Considering this, Schiff once again turned to the social media platform to come up with a more somber prediction.
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The new tweet said that the background to the accident was not yet known. He continues to stick to his prediction that the price of the digital asset will definitely hit $20,000 and Ethereum will follow with a drop to $1,000. For Schiff, these are the true lows, and from there he expects another crash which he called a “real crash.”
It took me a few days longer than I thought, but #Bitcoin got to $80 off of $20,000 and #Ethereum got to $20 off of $1,000. That’s a 30% drop in Bitcoin and a 40% drop in Ethereum since this tweet 4 days ago! But the bottom is not in that. When those lows are out, I expect a real shock. https://t.co/DNmfkwMK7V
— Peter Schiff (@PeterSchiff) June 15, 2022
Is it time to worry about Bitcoin?
While Peter Schiff’s prediction for the week came out right, that doesn’t mean all of his other predictions are accurate. A simple example of this is the fact that the economist has been against bitcoin for years, saying countless times that he expects the digital asset to drop to zero. But a look at the chart shows that it hasn’t been the money.
BTC up to around $20,000 | Source: BTCUSD on TradingView.com
Schiff had also preached his anti-bitcoin evangelism throughout 2021 and warned that people who invest in cryptocurrencies would end up losing their money. Rather, what happened were multiple bullish rallies that pushed the price of the digital asset up to $69,000, more than triple its previous cycle high.
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Now, Schiff’s advice on investing in certain assets like gold has been solid. However, the constant advice that investors should not buy bitcoins or cryptocurrencies has been mostly wrong.
Bear markets are expected after the kind of surge seen in 2021. The price of Bitcoin may not hit zero, but bear markets have been known to last for a while as long as prices remain low.
Featured image from FortuneBuilders, chart from TradingView.com
Disclaimer: The following editorial represents the views of the author and does not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate for creative and financial freedom.
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