According to the expert, “people should take advantage of the sucker rally they have now and get out.”
Euro Pacific Asset Management chief market strategist and investor Peter Schiff has warned investors that Bitcoin’s rise to new highs looks almost unlikely now, but it is on track to drop below $10,000.
Speaking to reporters, Schiff stated that the crypto market bull run that saw Ethereum gain 70% since the early stages of July is not sustainable, calling it a “fool’s rally.”
Schiff added that the sell-off in crypto markets this year was a clear reflection of a massive “pump and dump.”
The investor also described Bitcoin as a “major dumb scheme” that will inevitably fail. “All these big dumb schemes always fail. You run out of fools, and the last fool is the holder of the bag, “he said.
“The market is going to crash. I think people should take advantage of the uptick they have now and get out. Lots of people still make a profit on these tokens. People bought Bitcoin four, five, six years ago and they make huge profits. Same with Ethereum. People should get out because otherwise, the market is going to take those gains away,” he added.
Schiff lashes out at Bitcoin
The investor has had a bearish view of Bitcoin since 2011 and has subtly criticized it and its investors on several occasions. However, Peter Schiff has been dubbed a Bitcoin “negative” in the crypto space, given his frequent and near-extreme negative comments about Bitcoin and the crypto space in general, as well as the numerous times his price calls and predictions have failed.
In August 2019, the economist predicted that the Bitcoin price 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” even though Bitcoin had already lost 65% from its highs. However, weeks later, he backtracked, stating that, “At the end of the day, the only people who are going to walk away from this crypto bubble with something to show for it, are the people who sold it.”
Schiff Criticizes Michael Saylor
In early August, Peter Schiff tweeted scathing criticism at Michael Saylor, after the then-CEO of MicroStrategy claimed that the company’s investment in Bitcoin was “a great success for shareholders,” despite receiving a big hit after the Bitcoin bear run.
The investor described MicroStrategy stock as “overvalued” and that the company’s stock price would eventually collapse.
“I think it’s really ridiculous that Michael Saylor, CEO of MicroStrategy, continues to claim that this investment was a success. What you are doing is remembering what Bitcoin was when they bought the first Bitcoin. Well, we’re making money on our first purchase, but you can’t choose your first purchase, what about all the other purchases that were higher up? You can’t do that, you have to look at the whole and add up all your purchases. Are you ahead or behind? And they are way behind,” he said in a tweet.
By Audy Castaneda
