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Economist Peter Schiff explains why he expects Bitcoin to crash as recession deepens – warns ‘Don’t buy this dip’

Economist and gold bug Peter Schiff has made dire predictions about cryptocurrency, especially bitcoin and ether. He explained that “the need to sell bitcoin to pay the bills will only get worse as the recession deepens”, adding that bitcoin is on the verge of crashing to $20,000 while the ether will drop to $1,000.

Peter Schiff shares future outlook for Bitcoin, Ether, Crypto

The Gold Bug Peter Schiff, Chief Economist and Senior Strategist at Euro Pacific Capital and founder of Schiffgold, made dire predictions about bitcoin, ether, and the crypto market in general.

He tweeted on Saturday:

Bitcoin looks set to crash to $20,000 and Ethereum to $1,000… Don’t buy this dip. You will lose a lot more money.

Schiff further explained in several tweets on Sunday, “With food and energy prices soaring, many Bitcoin Hodlers will be forced to sell to cover the cost. Grocery stores and gas stations do not accept bitcoin.

The Economist noted, “When Bitcoin crashed during Covid, no one needed to sell. Consumer prices were much lower and Hodlers got stimulus checks.

Schiff pointed out:

The need to sell bitcoin to pay the bills will only get worse as the recession deepens and many Hodlers lose their jobs, especially those working for soon-to-be-bankrupt blockchain companies.

“If circumstances change, long-term buyers without a paycheck will be forced to sell,” he added.

Most bitcoin proponents continue to ignore all bitcoin and crypto predictions made by Schiff, with many seeing his gloomy expectations as a buy signal for BTC.

“This may be the most consistently bad investment advice on record,” one Twitter user wrote. Another asked Schiff: “Check Bitcoin or Ethereum 5 year charts then check gold. Which would you have preferred to hold? Which would you prefer to keep for another 5 years? »

As of this writing, bitcoin is trading at $26,212.07 while ether is trading at $1,373.77.

Additionally, a growing number of grocery stores and gas stations have started accepting bitcoin as well as other cryptocurrencies. Sheetz, a major mid-Atlantic restaurant and convenience store chain, announced in May last year that it had become the “first convenience store chain to accept bitcoin.” Several convenience stores and gas stations have also installed two-way bitcoin ATMs, including a major convenience and fuel retailer, Circle K.

While Schiff is bearish on bitcoin, ether, and the crypto market in general, a lot of people are very bullish on BTC. Venture capitalist Tim Draper recently doubled his prediction of $250,000 in bitcoins. US Senator Ted Cruz said he was “incredibly bullish” on bitcoin and had a weekly BTC buy. Devere Group CEO Nigel Green said last week that he expects a bull run and a “significant rebound” in the price of bitcoin in the fourth quarter of this year.

JPMorgan said last month that the company sees a “significant upside” for bitcoin. The global investment bank has replaced real estate with crypto as its “preferred alternative asset”. Additionally, a recent Deloitte survey found that 85% of US merchants say enabling crypto payments is a high priority for them.

What do you think of Peter Schiff’s warnings? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

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