Prominent American economist and well-known Bitcoin critic, Peter Schiff, believes that the price of the asset will collapse following the upcoming halving. He reasoned that the demand will fall after the event, which will result in a bearish BTC future.
May 6, 2020 | AtoZ Markets – Yesterday, the flagship cryptocurrency rallied above the $9000 mark leaving BTC investors and traders satisfied as the halving event is six days away. As many as predicted, the leading cryptocurrency could surge just before the event next week as well as in the aftermath of the halving. However, not everyone has such a bright outlook on Bitcoin.
Peter Schiff predicts Bitcoin price soon to collapse
Long-time BTC basher and gold supporter, Peter Schiff believes that “on a risk-adjusted basis, Bitcoin’s 23% gains versus gold’s 12% rise is far less impressive. With the halving just a few days away, Bitcoin’s YTD gains can face fast.” Later, he offered his arguments on why Bitcoin price could collapse soon:
A consensus trade is crowded and usually doesn't pan out as the crowd expects. I can't think of a more consensus trade in #Bitcoin than being long going into the halving, an event that is universally believed to be extremely bullish. So once the halving occurs, who's left to buy?— Peter Schiff (@PeterSchiff) May 5, 2020
Lastly, Schiff also insisted that the fading demand after the halving will eventually mean “trouble for miners.”
Is Schiff’s Bitcoin price prediction correct?
Some in the crypto community agree to some extent with Schiff’s adverse Bitcoin price predictions. Several polls from this week showcased the prevailing opinion that the coin will initially drop after the halving. However, the poll also shows that BTC will skyrocket later on. Of course, Bitcoin’s historic post-halving behavior makes a strong case against this statement.
After the first halving in 2012, BTC hit its first all-time high. Shortly after the halving in 2016, BTC skyrocketed from roughly $160 to its all-time high of $20,000. At the moment, some analysts are calling for highs of more than $55,000 to as high as hundreds of thousands of dollars per BTC.
Long-term price predictions put the asset well over one million dollars per BTC, but such lofty valuations are wild speculation. Still, the potential is there, and only time will tell if these predictions come true.
What do you make of Peter Schiff’s Bitcoin price prediction? Share your thoughts in the comments below.