Peter Schiff (피터 시프), known as a leading bitcoin critic, raised the possibility of a further sharp drop in bitcoin and urged investors to leave the market.
On Nov. 12, blockchain outlet Bitcoin Magazine reported that Schiff claimed clear signals of a full-fledged downturn were emerging because bitcoin failed to rise despite strong recent positive news.
Schiff drew a line against the counterargument that even if bitcoin stays weak for 2 to 3 years, gold or the Nasdaq have rebounded after similar moves. He said the background surrounding the market is different this time. He said markets typically move toward decline when they fail to rise even on the best news on record.
The core was a warning about the supply-demand structure. Schiff defined bitcoin as "an illusion" and claimed it has no intrinsic value, earnings or dividends. He also said a substantial portion of the current circulating supply has shifted not to users who want to use it as money but to exchange-traded fund (ETF) investors and bitcoin treasury companies.
Schiff also described the money currently in the market as short-term funds. He warned that the funds will eventually leave the market and that bitcoin could fall faster than it rose. He added that he expects a phase of large-scale dumping to come.
He said even long-term bulls should not hold on now. Schiff claimed that after speculative players using leverage are liquidated, long-term holders will also get a chance to buy again at lower prices.
He also drew a clear distinction between gold and bitcoin. Gold or the Nasdaq had periods of sluggish performance in the past but were able to recover later, while bitcoin is structurally different, he argued. He reaffirmed his existing view that bitcoin has no intrinsic value and generates no cash flow.
The point to watch going forward is whether actual outflows emerge. Schiff said the decline could widen if holdings by ETF investors and bitcoin treasury companies turn into selling pressure. He also mentioned the possibility that bargain-hunting demand could come in after leveraged positions are unwound. He added that the remarks are based on Schiff's market outlook and investment judgment, and that bitcoin's actual direction depends on how market investors move their money.
