From Coinpedia · By Nidhi Kolhapur
Economist Peter Schiff has warned that Bitcoin price could fall below $10,000, arguing that the market may have already peaked despite growing political and institutional support.
Advertisement In a recent interview, Schiff said Bitcoin failed to gain momentum despite positive developments over the past two years, including Donald Trump’s support, plans for a U.S. strategic Bitcoin reserve and the launch of spot Bitcoin ETFs.
He believes the failure to rally on positive news signals weakening demand and could lead to further selling.
Peter Schiff Says Bitcoin Failed to Rally on Positive News
Schiff pointed out that Bitcoin has recorded losses in consecutive years for the first time in its history. He said Bitcoin fell around 6.5% last year and was down approximately 18.5% so far this year at the time of the interview.
He argued that political support and growing institutional involvement have failed to push Bitcoin higher.
“If a market can’t go up on good news, that normally indicates that it’s going to go down,” Schiff said.
He believes investors who entered through ETFs and corporate treasury purchases could start selling, adding further pressure to Bitcoin’s price.
Schiff Predicts Bitcoin Could Fall Below $10,000
Schiff expects Bitcoin to face a deeper correction, potentially falling below $50,000 and $40,000 before finding a bottom.
He also warned that Bitcoin could eventually drop below $10,000 as speculative investors and leveraged traders exit the market.
He advised investors to sell their holdings and wait for prices to fall further before considering another entry.
“Get out now and wait for that washout,” he said.
Schiff also argued that Bitcoin’s value depends largely on market demand and speculation rather than income or cash flows.
Schiff Expects Gold and Silver to Benefit From Inflation
While he remains bearish on Bitcoin, Schiff expects gold and silver to benefit from rising inflation. He argued that real interest rates are falling because inflation is increasing faster than the Federal Reserve is raising interest rates.
Schiff also questioned whether the Fed can bring inflation back to its 2% target without significantly higher interest rates.
He expects the central bank to eventually cut rates and resume quantitative easing if higher borrowing costs push the economy into a recession. He believes this could increase inflationary pressure and support precious metal prices.
Schiff Says Fed Rate Hikes Will Not Be Enough to Control Inflation
Schiff believes the Federal Reserve needs much larger interest rate increases, along with a reduction in its balance sheet and money supply, to control inflation.