On April 14th, Peter Schiff, a prominent critic of Bitcoin, made headlines with his forecast of a potential downturn in BTC’s price, speculating that it could plummet to as low as $20,000. Schiff’s prediction reverberated throughout the cryptocurrency community, prompting discussions about the potential implications for investors and market sentiment.
In addition to his bearish outlook on Bitcoin’s price, Schiff raised concerns about Microstrategy, the largest corporate holder of Bitcoin. He warned that if Bitcoin’s price were to experience a significant crash, Microstrategy could incur substantial losses amounting to an estimated $2.7 billion. This assertion underscored the potential risks associated with holding large amounts of Bitcoin as part of a corporate treasury strategy.
Schiff’s Bitcoin price prediction was unveiled through a post on X (formerly known as Twitter), where he emphasized the significance of the cryptocurrency’s $60,000 support level. This level has historically served as a critical pivot point for Bitcoin’s price movements, often indicating shifts in market sentiment and investor confidence.
Peter Schiff foresees the emergence of a “triple top” pattern.
The outspoken proponent of gold and Bitcoin critic warned that a dip below Bitcoin’s $60,000 price threshold could precipitate a steep decline, potentially resulting in a significant plunge to $20,000. Schiff then underscored the potential consequences of this price decline on MicroStrategy’s Bitcoin holdings.
$60K is critical support for #Bitcoin. A decisive break below that level will create a formidable triple top. The immediate downside projection is a move to $20K. At that price $MSTR will have a $2.7 billion unrealized loss on 214K Bitcoin acquired at an average price of $34K. pic.twitter.com/F1P0NpLS3X
— Peter Schiff (@PeterSchiff) April 14, 2024
At present, MicroStrategy possesses around 1% of the entire Bitcoin supply, equating to roughly 214,000 BTC, obtained at an average price of $34,000. However, a decline to $20,000 would yield an approximate “unrealized loss” of $2.7 billion for the company.
Despite experiencing losses in MicroStrategy’s Bitcoin holdings during bearish market conditions, the company’s CEO, Michael Saylor, has maintained a steadfast optimism towards Bitcoin. He has consistently advocated for investors to adopt a long-term perspective and hold onto their investments. Saylor believes that turmoil in traditional markets often works to the advantage of Bitcoin.
Chaos is good for #Bitcoin.
— Michael Saylor⚡️ (@saylor) April 13, 2024
Schiff’s recent focus on MicroStrategy amid crypto market uncertainties isn’t unprecedented. Back in March, the gold advocate scrutinized MicroStrategy’s decision to acquire $623 million worth of BTC, cautioning about the potential for significant losses should Bitcoin’s price decline to $20,000.
However, Schiff’s forecast of a price plunge to $20,000 appears improbable given prevailing market trends, technical analysis, and historical patterns of doomsday projections for Bitcoin’s price.
Peter making up numbers for his Bitcoin TA pic.twitter.com/fekexhC1cB
— Walker⚡️ (@WalkerAmerica) April 14, 2024
Despite the recent decline towards the $60,000 level, which Schiff deems as “critical,” there is insufficient evidence to support a significant plummet to $20,000.
CoinCodex’s analysis of Bitcoin price predictions suggests that Bitcoin’s 50-day and 200-day Exponential Moving Averages (EMAs) stand at $63,128 and $47,900, respectively, serving as crucial support levels.
Should Bitcoin maintain a sustained position above these EMAs, it could potentially invalidate Schiff’s projected “triple top” scenario. Furthermore, a resurgence above the $60,000 mark could reinforce bullish sentiment toward Bitcoin, with a breakthrough past recent highs around $67,500 signaling a broader market recovery.
Peter Schiff remains skeptical about the potential for a “Bitcoin rally.”
Before making this recent doomsday prediction about the asset, Schiff had forecasted a continued decline in Bitcoin’s price.
#HODLers, do you remember how bullish you all were in Nov. 2021 when #Bitcoin traded $69K? I do. How many still have your laser eyes? A year later Bitcoin traded below $16K, almost 80% lower. Given that most are even more bullish now, an even bigger crash likely lies ahead.
— Peter Schiff (@PeterSchiff) March 19, 2024
Schiff likened Bitcoin’s bullish run in 2021, where the price surged to $69,000, to its subsequent decline, where it shed approximately 80% of its value, trading at $16,000 in November 2022.
Drawing from this comparison, Schiff initially anticipated a more substantial decline. However, this outlook was short-lived as the asset surged past the $71,000 price threshold on April 4th.
Schiff’s recent projection of Bitcoin plummeting to $20,000 coincided with escalating geopolitical tensions and renewed hostilities in the Israel-Iran conflict. These factors contributed to fluctuations in the price of BTC and impacted major markets.
Interestingly, a similar scenario unfolded in February 2022, when the Bitcoin market experienced a downturn amidst the Russia-Ukraine conflict. However, the market displayed resilience and witnessed a robust recovery following the period of instability.
Nevertheless, Schiff’s Bitcoin price forecast has sparked reactions within the crypto community. Crypto expert Stephan Livera has criticized Schiff’s analysis, asserting that it lacks credibility and fails to offer meaningful insights.
READ MORE ABOUT: Prominent economist Peter Schiff issues caution about a potential Bitcoin crash, advising investment in gold and silver instead.
