A sharp rebound that sent the bitcoin price 179 percent higher this year could soon fizzle, according to Peter Schiff of Euro Pacific Asset management.
The veteran stockbroker said bitcoin has not accurately recovered from 2018’s bearish sentiment, wherein its rate dropped from $20,000 to $3,200 in just 11 months. Adding that every bear market has fake rallies that attempt to “sucker in” the bulls, Schiff noted that the ongoing bitcoin price boom is one of the same things.
Experts:
“A lot of people got suckered into this pump-and-dump scheme because they heard all the stories about young kids taking their Bar Mitzvah money into bitcoin and bought a Lambo […] Pretty soon, it is going to be stories about people who lost their life savings because they put real money instead of play money into bitcoin.”
Schiff asserted that the bitcoin market has an abundance of fake buying sentiment because the cryptocurrency serves neither the purpose of money nor a store of value. He refuted bulls who believed bitcoin would play the role of a haven asset in times of a monetary crisis, adding that central banks and individual investors would always prefer gold because of its historical significance as money for thousands of years.