Bitcoin’s recent surge above $50,000 has triggered skepticism from economist and gold enthusiast Peter Schiff, who warns of Bitcoin pump and dump. Schiff expressed concerns over the enthusiasm surrounding new spot bitcoin exchange-traded funds (ETFs), questioning when a potential market downturn, or “massacre,” might occur.
Bitcoin has surged past the $50,000 mark this week, extending its impressive performance from the end of last year into a strong start for 2024. However, not everyone is convinced that these gains are sustainable, with prominent economist Peter Schiff labelling the latest rally a potential “pump and dump” scheme.
Renowned economist Peter Schiff warns of Bitcoin pump and dump. He suggests that traders are artificially inflating the price to attract retail speculators before selling off their positions and causing a rapid market crash.
On February 13th, Bitcoin surpassed $50,000, reaching over $51,000, marking a new high for 2023. The cryptocurrency has experienced a remarkable 40% gain since the beginning of January. The broader crypto market has also witnessed positive momentum, with Ethereum exceeding $2,500 and various altcoins registering double-digit percentage increases.
Traders attribute Bitcoin’s recent surge to several factors, including increased institutional investment inflows at the start of the year, optimistic expectations for sustained long-term price growth, and a broader bullish momentum in risk assets.
Despite the overall positive sentiment in the crypto market for 2024, Schiff remains critical of Bitcoin, expressing scepticism and opting not to invest in the digital currency. He attributes the recent price movement to manipulation rather than underlying market dynamics.
The crypto community’s views on the sustainability of Bitcoin’s current rally remain divided. Bullish analysts believe prices can continue rising with increased adoption, while bears argue that the asset is overextended and poised for a potential selloff.
Schiff’s Doubts on Bitcoin’s Rally
Peter Schiff took to social media to voice his doubts, labelling the current bitcoin surge as “another classic pump-and-dump.” He specifically highlighted the excitement around recently listed bitcoin ETFs, raising questions about the sustainability of the current bullish trend.
Response from the Crypto Community
In response to Schiff’s scepticism, members of the crypto community reminded him of past inaccurate predictions regarding Bitcoin’s price. Some pointed out his advice against buying bitcoin at lower prices in the past, emphasizing the missed opportunities for those who followed his recommendations.
Historical Context
Referencing Schiff’s past predictions, it’s worth noting that in November 2018, he cautioned against considering Bitcoin below $3,800 as a bargain, predicting a potential 80% drop even from that level. Such warnings have not always aligned with the market’s actual performance.
Previous Warnings on ETFs
Schiff had previously declared all spot bitcoin ETFs to be in bear markets in January, anticipating deeper losses. He cited speculator sell-offs and anticipated minimal institutional demand, adding concerns about potential regulatory actions under U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler.
Response from Trading Veteran Peter Brandt
Reacting to Peter Schiff’s warning of Bitcoin pump and dump assertion, seasoned trader Peter Brandt responded on social media, expressing his belief that Schiff might eventually be correct about a market prediction, but suggested it might not be related to Bitcoin.
As the debate between gold advocate Peter Schiff and the crypto community continues, the future of Bitcoin’s current surge remains uncertain. While Schiff warns of a potential “massacre,” the crypto space awaits to see if his concerns materialize or if the current bullish momentum will prove sustainable. In the dynamic world of cryptocurrencies, only time will reveal the true trajectory of Bitcoin’s price.
Also Read: Skybridge Founder makes an Optimistic Call: Says It’s Not Too Late to Buy Bitcoin.
