Connect with us

Crypto World

Peter Schiff wants you to sell your Bitcoin as he predicts 84% crash

Published

on

Peter Schiff wants you to sell your Bitcoin as he predicts 84% crash

Longtime Bitcoin critic Peter Schiff has reignited debate over the cryptocurrency’s outlook, warning that a break below $50,000 could trigger a steep drop toward $20,000, an 84% decline from its all-time high.

Summary

  • Peter Schiff warned that if Bitcoin breaks below $50,000, it could fall to $20,000 — an 84% drop from its all-time high — urging investors to “sell Bitcoin now.”
  • Schiff argued that while Bitcoin has suffered similar drawdowns before, the current market carries greater risk due to increased leverage, institutional ownership, and overall market size.
  • His comments sparked backlash on X, with users pointing to his long history of bearish calls and defending Bitcoin’s long-term value proposition as a censorship-resistant, globally liquid financial network.

Sell Bitcoin now, says Peter Schiff

In a post on X, Schiff argued that “if Bitcoin breaks $50K, which looks likely, it seems highly likely it will at least test $20K,” adding that such a move would mirror previous drawdowns but unfold under very different market conditions.

“I know Bitcoin has done that before,” he wrote, “but never with so much hype, leverage, institutional ownership, and market cap at stake. Sell Bitcoin now!”

Advertisement

Schiff, a prominent gold advocate and frequent crypto skeptic, has long maintained that Bitcoin’s price cycles resemble speculative bubbles fueled by liquidity and investor enthusiasm. His latest warning comes amid renewed volatility in digital asset markets, where traders are closely watching key technical levels.

An 84% retracement would echo past bear markets. Bitcoin has previously suffered drawdowns exceeding 70% following euphoric rallies, including after its 2017 peak and again following its 2021 high. However, the asset’s structure has evolved significantly, with spot exchange-traded funds, corporate treasuries, and institutional allocators now holding sizable positions.

Schiff’s latest warning quickly drew pushback on X, where critics accused the longtime gold advocate of repeating a decade-old bearish script.

Advertisement

One user claimed investors who followed his past calls on silver were left “stuck in it for 20 years,” referencing the metal’s prolonged stagnation after previous peaks. Others pointed to Schiff’s history of urging investors to sell Bitcoin at far lower levels, noting that he has been issuing similar warnings since the asset traded near $100.

A separate response argued that Bitcoin’s “intrinsic value” lies in its censorship-resistant settlement network, global liquidity, and lack of gatekeepers, framing its volatility not as a flaw but as the market’s process of pricing a new financial system in real time.

The exchange shows the entrenched divide between Schiff and Bitcoin advocates, with critics portraying his latest $20,000 forecast as a continuation of a long-running skepticism that has so far failed to derail the cryptocurrency’s broader upward trajectory.

Still, Schiff’s comments highlight a persistent divide in the investment community: whether Bitcoin’s growing institutional footprint makes it more resilient or more vulnerable in the event of a sharp downturn.

Advertisement

Source link

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

House Democrats Grill Bessent Over Trump-Linked Crypto Bank Bid

Published

on

Cryptocurrencies, Politics, Congress, United States, Donald Trump

Democrats in the US House of Representatives are pressing Treasury Secretary Scott Bessent over how regulators are handling World Liberty Financial’s bid for a national trust bank charter to issue a dollar-backed token.

In a letter on Thursday, 41 House Financial Services Committee Democrats led by Representative Gregory Meeks cited systemic risk, foreign ownership and potential political pressure on the bank chartering process. 

They asked Bessent to explain what safeguards exist to prevent foreign government officials or politically connected investors from using the charter process to gain leverage over the US financial system.

​The lawmakers pointed to reporting that a senior royal from the United Arab Emirates quietly acquired almost half of World Liberty Financial for about $500 million, including a reported $187 million flowing to Trump-affiliated entities, while the company pursued a national trust bank charter with the Office of the Comptroller of the Currency (OCC).

Advertisement
Cryptocurrencies, Politics, Congress, United States, Donald Trump
Democrats’ letter to Treasury Secretary Scott Bessent. Source: Meeks.house.gov

They argued that the combination of digital asset trust structures, untested liquidity and resolution frameworks and foreign political interests raised questions that regulators “cannot afford to sidestep.”

Related: White House floats limited stablecoin rewards in third crypto, bank meeting

​Democrats also questioned whether Executive Order 14215, which they say pulled traditionally independent financial regulators into closer White House oversight, could compromise the OCC’s autonomy in deciding on World Liberty’s application. 

The letter asks Bessent to detail the role of the White House, the Office of Management and Budget, and the Treasury Department in OCC charter decisions, and to respond in writing by Thursday.

World Liberty Financial’s high profile

The letter arrives as World Liberty Financial and other Trump-aligned crypto initiatives raise their profile in Washington and on Wall Street, including through a well-attended crypto event at Trump’s Mar-a-Lago club on Wednesday that drew crypto and traditional finance executives, including Coinbase CEO Brian Armstrong, Binance co-founder Changpeng Zhao and Goldman Sachs CEO David Solomon. 

Advertisement

In the run-up to the event, the WLFI token associated with the Trump family-aligned platform recorded a 23% gain as organizers promoted the event as a venue to spotlight World Liberty’s roadmap and its role in the broader crypto market.

No bailout of “cryptocurrency billionaires” 

Separately, Senate Banking Committee Democratic Senator Elizabeth Warren urged Bessent and Federal Reserve Chair Jerome Powell on Wednesday not to deploy taxpayer-backed support to stabilize crypto markets. She warned that any bailout of “cryptocurrency billionaires” would create a moral hazard and shift losses from large investors onto taxpayers. 

Warren’s letter framed potential rescue measures for major crypto firms and investors as a test of whether policymakers would extend bank-style backstops to the digital asset sector, as regulators weigh new charters and oversight for crypto-linked institutions.

Big Questions: Is China hoarding gold so yuan becomes global reserve instead of USD?

Advertisement