Peter Schiff, economist and activist against bitcoin has advised investors to avoid the digital currency for several years. The economist repeatedly warned bitcoin’s price would drop to zero. Schiff didn’t change his position on the asset despite multiple errors. According to tradition, Schiff took to Twitter to advise investors to avoid the cryptocurrency.
Peter Schiff: Sell Bitcoin
Peter Schiff, the chief economist and strategist for global affairs took to Twitter on Tuesday to share his thoughts. warn investors once more about the ‘dangers’ of investing in bitcoin. The recent bitcoin price trend, which is now at $20,000 per coin, was mentioned by him as a false bottom.
Further, he says that now is not the right time to buy bitcoins as the value of this digital asset will likely plunge. His recommendation was to investors at that time: Sell your bitcoin.
“Markets rarely give investors much time to buy the bottom. For the last 12 days, #Bitcoin traded at $20K. It is more likely that $20k will be a false bottom. This gives suckers ample time to board a sinking vessel. Better to abandon ship before the bottom drops out.”
A follow-up tweetSchiff cites the decline in bitcoin’s dominance as one reason it shouldn’t be a viable investment option. The economist claims that bitcoin is competing against 21,000 other cryptocurrency and assets from different areas of the market. All of this competition has an effect on the asset’s value.
Source: Market Cap BTC Dominance on TradingView.com| Source: Market Cap BTC Dominance on TradingView.com
BTC loses market share
Bitcoin’s market share has been plummeting over the last couple of years. Bitcoin has lost market share, dropping from more than 90% to less than half of its total market share.
BTC’s total market dominance is currently sitting below 40% at the time of this writing. It is worth noting that BTC has maintained its dominance in a market where altcoins have been growing in popularity, drawing more investors’ attention.
Bitcoin’s increasing use as an inflation hedge also helps to prop up the digital asset. In addition to delivering higher returns year-over-year over the last few years, Bitcoin also has higher annualized returns. It has proven Schiff wrong before, rising to $69,000 in the face of predictions that it would drop to zero.
BTC seems to be in a bear market that could continue for some time, as shown by past bear market cycles. But history shows that bitcoin could experience a new bull rally when the halving takes place in 2024.
Featured image taken from Coincu News. Chart by TradingView.com
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