Schiff added that the selloff in the crypto markets this year was a clear reflection of a massive “pump and dump”.
Investor, and Chief market strategist of Euro Pacific Asset Management, Peter Schiff, has warned investors that Bitcoin rising to new highs seems almost unlikely now but is on course to dip below $10,000.
Speaking to reporters, Schiff stated that the bull run in the crypto market which saw Ethereum gain 70% since the early stages of July, is not sustainable, calling it a “sucker’s rally.”
The investor also described bitcoin, as a “greater fool scheme” that will inevitably fail. “All these greater fool schemes always fail. You run out of fools, and the last fool is the bag holder,” he stated.
“The market is going to plunge. I think people should take advantage of the rally they’ve got right now and get out. A lot of people still have profits in these tokens. People bought Bitcoin four, five, and six years ago, and they have big profits. Same thing with Ethereum. People should get out because otherwise, the market’s going to take those profits,” he added.
The investor has held a bearish view on Bitcoin since 2011 and has taken subtle jabs at it and its investors on several occasions. Peter Schiff has however been dubbed a Bitcoin ‘nay-sayer’ in the crypto space, given his frequent and almost extreme negative comments on Bitcoin and the crypto space in general as well as the numerous times his price calls and predictions have failed.
Back in August 2019, the economist predicted that the price of Bitcoin would never touch the $50,000 mark, a prediction that came back to haunt him.
Earlier this year, the investor claimed that the crypto market was in a “bubble” despite Bitcoin already having lost 65% from its highs. He however doubled back, weeks later, stating that, “At the end of the day, the only people that are going to walk away from this crypto bubble with anything to show for it are the people who sold it.”
Schiff added that the selloff in the crypto markets this year was a clear reflection of a massive “pump and dump”.
In the early stages of August, Peter Schiff took to Twitter to criticize Michael Saylor after the then CEO of MicroStrategy claimed that the company’s Bitcoin investment was “a screaming home run for shareholders” despite taking a huge hit after the Bitcoin bear run.
The investor described MicroStrategy stock as “overvalued” and that the price of the company’s shares was eventually going to crash.
“I think it’s really ridiculous that Michael Saylor, CEO of MicroStrategy is still claiming that this investment was a success. What he’s doing is he’s looking back at what Bitcoin was when they bought the first Bitcoin. It’s like well, we’re making money on our first purchase, but you can’t cherry-pick your first purchase, what about all the other purchases that were higher up? You can’t do that, you’ve got to look at the totality and add up all your purchases. Are you ahead or behind? And they’re way behind,” he stated in a tweet.
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