Economist and gold bug Peter Schiff says bitcoin still has a long way to go after the collapse of crypto exchange FTX. He also believes that $10k is the real price of bitcoin, warning that “Much of the selling hasn’t even started yet.”
Schiff predicts ‘Bitcoin still has a long way to go’
Gold bug and economist Peter Schiff warned in a series of tweets about bitcoin prices falling a long way from current levels.
He started by referencing a forecast he made in June that the need to sell bitcoin to pay bills would only worsen as the recession deepened and protracted. BTC those without wages were forced to sell. Noting that it didn’t take long for his prediction to come true, Schiff tweeted on Wednesday:
Most of the selling hasn’t even started yet. Bitcoin still has a long way to go.
He added in a follow-up tweet: “I have been warning for years that everyone who makes money in crypto will be sued by everyone who has lost money in crypto. So the lawyer got on the pump.
Commenting on the demise of crypto exchange FTX and former CEO Sam Bankman-Fried (SBF), Schiff wrote: “I never considered SBF because I never even considered investing. invest in FTX. But if I do a ten-minute appraisal the red flags will be very clear.” He further explained:
Many people in the cryptosphere have been easily fooled by an obvious scammer questioning their judgment on all things crypto.
Schiff thinks $10K is the real price of Bitcoin
Schiff also shared his thoughts on the recent performance of Grayscale’s bitcoin trust (GBTC) and its relationship to the bitcoin price. The bitcoin skeptic wrote on Friday:
Based on GBTC’s 43% discount to NAV, bitcoin has been trading well below $10k. I think this is the real price of bitcoin, because when you sell GBTC you will get paid with real money. But when you sell BTC you get paid tether. To get actual cash for bitcoins, you have to accept huge discounts.
“GBTC is currently trading at a 46% discount. New record. Something is definitely happening. Bitcoin is in real trouble. Get out while you can!” yellow bug added. At the time of writing, BTC is trading at $16,727.
Many on Twitter disagreed with Schiff. One user said: “This is embarrassing. Imagine trash BTC because it’s $100, and all these years later, you still don’t know any aspect of it.” Another wrote: “I never got a leash when selling bitcoin. Also, the price drop is because there are hedge funds that can only buy GBTC and not BTC are becoming trash and must increase whatever liquidity they can.”
Market analyst Joe Consorti explained on Twitter Friday that GBTC has been dumped by institutions throughout the year and that its parent company Digital Currency Corporation (DCG) has chosen to pick up the bag. “to mitigate the effects of institutional-level selling pressure and prop up the fund’s net asset value (NAV).” However, he noted, “However, that intervention did not prevent the fund’s net asset loss from expanding to -42.7%.”
On Friday, Grayscale Investing To share information about the safety and security of its products. The asset management company emphasizes that the digital assets of their products are safe and secure.
What do you think of Peter Schiff’s comments? Let us know in the comments section below.
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