Economist and gold bug Peter Schiff says bitcoin still has a long way to fall following the collapse of crypto exchange FTX. He also believes that $10,000 is the real price of bitcoin, warning that “The lion’s share of the selling hasn’t even started yet.”
Schiff predicts “Bitcoin still has a long way to fall”
Gullfeil and economist Peter Schiff has warned in a series of tweets that the price of bitcoin will fall far from its current level.
He began by referencing the forecast he made in June that the need to sell bitcoin to pay bills will only worsen as the recession deepens and long-term BTC holders without paychecks are forced to sell. Noting that it didn’t take long for his prediction to come true, Schiff tweeted Wednesday:
The majority of sales haven’t even started yet. Bitcoin still has a long way to fall.
He added in a follow-up tweet: “I have been warning for years that all the people who made money on crypto will be sued by all the people who lost money on crypto. So lawyer up pumpers.”
Commenting on the collapsed crypto exchange FTX and former CEO Sam Bankman-Fried (SBF), Schiff wrote: “I never looked at SBF, as I never even considered investing in FTX. But if I had done ten minutes of due diligence, the red flags would have been obvious.” He elaborated:
That many in crypto were so easily duped by an obvious scam calls into question their assessment of all things crypto.
Schiff believes $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 price of bitcoin. The Bitcoin skeptic wrote on Friday:
Based on GBTC’s 43% discount to NAV, bitcoin is already trading well below $10K. I believe this is the real price of bitcoin as when you sell GBTC you get paid real money. But when you sell BTC you get paid tether. To get actual money for bitcoin, you have to accept a huge discount.
“GBTC is trading at a 46% discount now. New record. Something is definitely up. Bitcoin is in real trouble. Get out while you can!” the gold bug added. At the time of writing, BTC is trading at $16,727.
Many on Twitter disagreed with Schiff. One user said: “This is just embarrassing. Imagine throwing away BTC since it was $100 and all these years later you still have no idea about some aspect of it.” Another wrote: “I’ve never been chained when I sold bitcoin. The discount is also because it’s hedge funds that can only buy GBTC and not BTC that gets dumped and has to get what liquidity they can.”
Market analyst Joe Consorti explained on Twitter on Friday that GBTC has been dumped by institutions all year and parent company Digital Currency Group (DCG) has chosen to pick up the bag “to cushion the impact of the selling pressure at the institutional level and prop up the fund’s net asset value (NAV) .” However, he noted: “That intervention has still not stopped the discount to NAV of the fund’s expansion to -42.7%.”
On Friday, Grayscale Investments shared information about the safety and security associated with 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 comments section below.
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