The American stockbroker thinks it is disadvantageous to hold Bitcoin in the long term due to the risks of losing everything. He also said that LUNA is practically useless, as it lost its 1:1 parity with the US dollar, falling to 62 US cents.

Leading cryptocurrency critic Peter Schiff, the president of Euro Pacific Capital, recently recommended selling before the Bitcoin market collapses. He noted BTC is still trading above USD 28,000 and said it was a bad idea to hold it in the long run.

In addition to macroeconomic factors, there is also a debate over the use of Bitcoin as a reserve currency. However, the concerns in the crypto market reached critical levels after the stablecoin TerraUSD (UST) lost its peg with the US dollar.

That has been crucial for Bitcoin, as the Luna Foundation Guard is buying Bitcoin to strengthen its UST reserves. Terra seeks to reach USD 10 billion in Bitcoin, of which it has accumulated the equivalent of around USD 3.5 billion.

The sell-off in tech stocks and Bitcoin accelerated as the Dow Jones dropped by more than 1,000 points. In addition, the Nasdaq 100 index recently fell by 5%, its worst daily performance in the last two years.

The price of Bitcoin recently dropped to lows around USD 26,350.49, not seen since 2020. BTC is 61.7% below the all-time high of USD 69,044.77 that it reached in November 2021.

Peter Schiff Believes It Is Time to Sell Bitcoin

The price of cryptocurrencies in the market has been moving for some time, alongside the stock market, particularly tech stocks.

Several experts consider that investors that support technology companies also bet on cryptocurrencies. For that reason, risky assets like BTC and tech stocks are the first investors liquidate when market fears rise.

Peter Schiff took the opportunity to remind cryptocurrency fans and the companies that have invested in Bitcoin about that connection.

Schiff told his Twitter followers that USD GLXY-T dropped by 20%, USD BITF by 16.5%, and USD HIVE by 13.5%. He explained that this is not the expected behavior of the stock market. He referred to cryptocurrency-linked companies like Galaxy Digital Holdings Ltd, Bitfarms Ltd, and Hive Blockchain Technologies Ltd.

The American stockbroker also warned that it was time to sell since there was a high risk of huge losses. He stated those who did not do so could not blame anyone but themselves for what might happen.

Schiff Considers the LUNA Token Practically Useless

Another warning issued by Peter Schiff has to do with the current situation of LUNA, the digital token of Terraform Labs.

LUNA tanked by 99%, eliminating nearly USD 22 billion of market capitalization gains over the last week.

Schiff stated that LUNA is practically useless, as over USD 50 billion in market capitalization gains quickly disappeared.

The stablecoin UST, developed by Terraform Labs, lost its 1:1 parity with the US dollar, falling to 62 US cents over the past week.

LUNA is trading at around USD 0.000388 and has accumulated a 609.4% gain over the last 24 hours. While its daily trading volume is above USD 5.08 billion, its market capitalization is about USD 2.77 billion, according to CoinGecko.

By Alexander Salazar

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