Peter Schiff predicts more bears in Bitcoin despite its recent recovery

By: Jinia Shawdagor
Jinia Shawdagor
Jinia is a cryptocurrency and blockchain enthusiast based in Sweden. She loves everything positive, travelling, and extracting joy and… read more.
on Jul 21, 2021
  • The stockbroker says BTC might face resistance at the $30,000 level, forcing it to plunge further.
  • According to Schiff, BTC is a risk asset that does not follow the direction of other similar assets.
  • Meanwhile, Cathie Wood’s Ark Invest purchased more GBTC shares after BTC dropped below $30,000.

Peter Schiff, an American stockbroker, believes Bitcoin (BTC/USD) is not yet out of the woods despite recovering yesterday’s losses. He shared his predictions on the BTC market through a tweet earlier today, saying that BTC’s price might fail to maintain its gains. According to him, the $30,000.00 (£22,052.55) level might be BTC’s new resistance level.

While Schiff believes that BTC’s gains might be capped at $30,000.00 (£22,052.55), the leading cryptocurrency has already surpassed this level and is headed toward $31,000.00 (£22,791.36). At the time of writing, BTC is changing hands at $30,768.90 (22,611.60) after gaining 3.07% over the past 24 hours.

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In another tweet, Schiff criticized BTC saying that it has proved not to correlate with other risk assets. He noted that BTC plunged by a larger margin compared to risk assets, such as the SP 500, Nasdaq Composite, and the Dow Jones Industrial Average, which experienced a significant rout on Monday. While the stocks recovered yesterday, BTC dipped once again to trade as low as $29,360.96 (£21,569.30) before closing the day at $29,807.35 (£21,897.22)

BTC is still up 220% over the past 12 months

Commenting on BTC’s poor performance, Anthony Pompliano, a renowned BTC proponent, said,

The worst part about bitcoin’s price dropping is that we have to listen to bears claim victory while they completely ignore the fact that the asset is up 220% over the last 12 months.

While BTC’s plunge from its ATH of $64,863.10 (£47,629.30) to its current level might have discouraged investors, crypto bulls are actively buying the dip. For instance, Cathie Wood’s Ark Invest purchased more shares of the Grayscale Bitcoin Trust (GBTC) yesterday. Reportedly, the fund purchased an additional 140,157 shares of GBTC. Just a day before this, Ark Invest bought 310,000 GBTC shares.

Wood, who believes BTC will eventually hit $500,000.00 (£367,027.50), has a long-term approach to investing in the digital asset and has been accumulating GBTC shares. Before the Monday and Tuesday purchases, Ark Invest bought 1 million GBTC shares on June 22 when BTC plunged to $28,893.62 (£21,209.51).

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