Peter Schiff said Bitcoin (BTC) was in a long-term bear market after falling to $68,000, below where it was trading in November 2021.
But it was countered by some OG cryptocurrency supporters, who said comparing old highs with later lows doesn’t prove much.
A pointed question for BTC buyers 2021
In an article on X today, Schiff request Bitcoin investors need to think about how they would have reacted five years ago if someone told them the asset would end up trading below its November 2021 price.
Recall that BTC reached an all-time high at the time close $69,000 on November 10, 2021, and according to CoinGecko data at the time of writing, it was trading only a few hundred dollars above $68,000. It is in this spirit that the defenders of gold have rendered a verdict:
“Bitcoin is in a long-term bear market. The long-term trend is down.”
Initially, as CryptoPotato According to reports, the asset failed to sustain its rally above $75,000 and fell to $73,000 even as its dominance climbed above 60.5%, suggesting that altcoins were having an even harder time maintaining their market value.
Then news broke that Nvidia co-founder and CEO Jensen Huang had resigned following revelations of infidelity, in which he allegedly had affairs with multiple women, including a colleague and an alleged Chinese spy, and the crypto seemed to have been caught in its ripples, losing nearly 4% of its value according to CG.
BTC was among the big bleeders, with CG data showing a 7.0% drop in 24 hours, although XRP, ETH and SOL were hit even more during this period, losing 16%, 14% and 12% respectively.
The flagship cryptocurrency is also down more than 9% over seven days and almost 11% over the past two weeks, with the recent weakness also reducing it more than 17% to its level a month ago.
But Schiff’s assessment of the situation has not gone unchallenged, with Bitcoin podcaster Stephan Livera emphasizing that the asset had also been trading below its 2017 all-time high in November 2022. According to him, comparing previous market peaks with subsequent lows can be misleading.
The acquisition of STRC by Strategy enters the debate
Schiff also defended his favorite asset, noting that gold gained more than $40 overnight. And when a follower questioned his outlook by pointing out the precious metal’s fall from $5,600 to below $4,000, the economist predicted it would climb back above $5,600 before the end of 2027.
However, he didn’t have kind words for another of his favorite topics, Michael Saylor’s strategy. On Monday, the company announced that it purchased an additional 1,036 BTC for approximately $82 million, as well as a $188 million buyback of its STRC shares. The BTC critic claimed that Strategy should continue buying STRC because as soon as he stops buying, the price will collapse.
“So all of a sudden this great product, Strategy has to buy it all back because their customers don’t really want it anymore,” Schiff said of the STRC buyout. “But imagine how much lower the price of STRC would be if Saylor had not bought back more than 20% of the current issue.”
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