Peter Schiff, a prominent Bitcoin critic, is sounding the alarm again, claiming the digital asset is in a bear market. Schiff noted that Bitcoin has dramatically underperformed compared to gold, noting that the cryptocurrency’s price has fallen by about 40% since its peak about three years ago.
Schiff has a direct message to HODLers: Bitcoin’s continued difficulties may indicate that investors are unaware of market realities. Schiff argues that while Bitcoin is currently above the key support level of $60,000, this is only a temporary situation.
BTC/USDT chart by TradingView
Schiff argues that as long as global macroeconomic conditions continue to place significant strain on risk assets like Bitcoin, Bitcoin’s weakness relative to gold will become more apparent. However, the information collected by Glassnode provides a more complex picture of recent movements in the Bitcoin market.
Around 4-5% of net capital inflows into Bitcoin since early January may be linked to US spot ETFs. Given that the cost basis of these ETFs ranges from $54,900 to $59,100, many institutional investors who made initial investments in these funds are now psychologically close to breaking even.
related
If Bitcoin falls below these levels, investors looking to cut their losses could start selling Bitcoin. This paints a rather vulnerable picture for Bitcoin. Schiff advises investors to reevaluate their bullish positions despite the $60,000 support level remaining solid so far. The larger trends are still unclear.
The key points to note are below $59,000 and above $64,000. Bitcoin could enter further bearish territory if it falls below $59,000, but above $64,000 could reignite optimism for a broader rebound. As the saying goes, time is the best tool to determine who needs you the most, and only time will tell if someone really needs Bitcoin.
