Bitcoin has had a rough week as its price went from over $ 12,000 to just $ 10,000 in just a few days. As a consequence, this rally has brought Peter Schiff back once again, this time claiming that Bitcoin has returned to a bear market.
Bitcoin has returned to a bear market
Sure enough, Peter Schiff, who is the Executive Director of Euro Pacific Capital. He believes that the recent crash of Bitcoin signals the start of a new bear market.
In this sense, it all started in an exchange on Twitter with Tyler winklevoss, CEO of Gemini. When it indicated that Bitcoin was consolidating.
In response to this, Peter Schiff added: “The more the 10K support level is tested, the weaker it becomes. Markets rarely provide investors with so many opportunities«.
Peter Schiff admits he was wrong with the price predictions
Along the same lines, he also admitted that he correctly predicted the evolution of the price of gold for August. But, he was wrong in some Bitcoin price predictions. Regardless, he kept insisting that he had returned to a bear market.
In his view, the recovery of Bitcoin to over $ 12,000 was energetically initiated by Grayscale.
According to Schiff, the current correction points to a new bear market for Bitcoin. The more often support is tested, the weaker this support level becomes and the likelihood of a further correction below the $ 10,000 mark increases.
However, Schiff continued to stick to his narrative, concluding that:
“Falling to $ 10,000 Bitcoin quickly returned to a bear market.”
Bitcoin’s recovery by Grayscale
It must be added, that in the second week of August, Grayscale started a marketing blitz with a new television commercial that aired on CNBC, MSNBC, Fox and Fox Business.
Consequently, the announcement resulted in a total investment inflow of $ 217 million, into Grayscale’s cryptocurrency funds.
In this regard, CEO Barry Silbert praised it as the company’s highest weekly fundraising result.
While the success of the ad campaign could have had a positive impact on the price of Bitcoin, it is less clear what effect gold had on Bitcoin.
To close the idea, Peter Schiff confirmed that he believes that: «Bitcoin has re-entered a bear market phase«. Do you think he is right? Leave us your opinion in the comment box.
At the time of this article’s publication, Bitcoin is valued at $ 10,022, having fallen 16% since it topped $ 12,000 on August 2 of this year.