by Economist and gold bug Peter Schiff says Bitcoin still has a long way to go following the collapse of crypto exchange FTX. He also believes $10,000 is Bitcoin’s true price, warning that “the lion’s share of the sale hasn’t even started.”
Schiff predicts “Bitcoin still has a long way to go”
Gold bug and economist Peter Schiff has warned in a series of tweets that Bitcoin’s price will fall sharply from its current levels.
He initially referred to his prediction made in June that the need to sell Bitcoin to pay bills will only get worse as the recession deepens and long-term BTC holders are forced to sell without paychecks. Noting that it didn’t take long for his prediction to come true, Schiff tweeted on Wednesday:
The lion’s share of the sale hasn’t even started yet. Bitcoin still has a long way to go.
He added in a follow-up tweet, “I’ve been warning for years that all the people who made money from crypto will be sued by all the people who lost money from crypto. So advocate for pumpers.”
Commenting on collapsed crypto exchange FTX and former CEO Sam Bankman-Fried (SBF), Schiff wrote: “I have never looked into SBF as I have never even considered investing in FTX. But had I done ten minutes of due diligence, the red flags would have been obvious.” He elaborated:
That many in crypto have been so easily fooled by an obvious scammer challenges their judgment of all things crypto.
Schiff thinks $10,000 is the true 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 percent discount to NAV, Bitcoin is already trading well below $10,000. I think this is the real price of bitcoin because when you sell GBTC you get real money. But when you sell BTC, you get paid for Tether. To get real cash for bitcoin, you need to accept a huge discount.
“GBTC is now trading at a discount of 46%. New entry. Something is definitely happening there. Bitcoin is in real trouble. Get out while you can!” added the gold bug. At the time of writing, BTC is trading at $16,727.
Many people on Twitter disagreed with Schiff. One user said: “This is just embarrassing. Imagine throwing BTC away since it was $100 and all these years later you still have no idea about any aspect of it.” Another wrote: “I’ve never gotten tether when I sold bitcoin . The discount is also because there are hedge funds that can only buy GBTC and not BTC, which are thrown away and need to raise as much liquidity as possible.”
Market analyst Joe Consorti explained on Twitter on Friday that GBTC has been institutionally dumped throughout the year and its parent company Digital Currency Group (DCG) has decided to lift the sack “to mitigate the impact of institutional-level selling pressure and shore up the.” Net asset value (NAV) of the fund.” However, he noted: “Nevertheless, this intervention did not prevent the discount to NAV of the fund widening to -42.7%.”
On Friday, Grayscale Investments shared information about the safety of its products. The asset management firm insisted that its products’ digital assets are safe and secure.
What do you think of Peter Schiff’s comments? Let us know in the comment section below.
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