Peter Schiff, executive director of market strategies at Euro Pacific Asset Management, stated that the leading cryptocurrency Bitcoin will never again reach its highest value since November 2021, which is $69,000. In a post on Twitter, the long-time Bitcoin skeptic stated the reason for his claim, saying that the jump to $69,000 was a scam made possible by unprecedented crypto marketing and speculative buying using leverage trading.
He confirmed his claims with the bankruptcy of the FTX crypto exchange, adding that the Bitcoin mania is over. "A year ago #Bitcoin hit $69,000. One of the main reason for the spectacular rally was all the leverage that funded unprecedented #crypto advertising and speculative buying.
The #FTX bankruptcy proves the entire rally was a fraud. It will never be repeated. Bitcoin mania is over." he tweeted
This is not the first comment of the popular American broker, who has often pointed out the decline of Bitcoin before.
Peter Schiff also believes that Bitcoin is moving towards a price of zero dollars, in the long term. After BlockFi suspended all withdrawals from user accounts, Schiff stressed that investors should sell their Bitcoins if they are able.
In August, Schiff predicted a fall in the price of Bitcoin towards the $10,000 level, advising people to exit this market while they are still in profit. Schiff has a similar opinion when it comes to the second largest cryptocurrency Ethereum (ETH), as well as the rest of the crypto market.
The price of Bitcoin continues to fall
At the time of writing, Bitcoin is trading at $16,730, according to CoinMarketCap. The current price represents a slight recovery from the lowest price in two years, which Bitcoin reached after panic selling by investors when the FTX debacle and their $8 trillion shortfall became known.
This saga continued on November 11, when FTX declared bankruptcy, only to announce just a day later that this exchange was allegedly hacked. The contagion surrounding the collapse of this crypto exchange strongly affected the entire crypto market, and the capitalization of this market dropped from a trillion dollars to almost 750 billion dollars in just two days.
The current amount of capital of the crypto market is about 800 trillion dollars. After all, Bitcoin is still the most valuable asset in the last decade. According to data from Case Bitcoin, which tracks the return on investment for several top assets, Bitcoin achieved a return of 154,890% on invested capital, while investing in gold saw only a 3% return on invested capital.