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Peter Schiff, Chief Economist and Global Strategist, predicts that even after the current crypto market conditions, “Bitcoin still has a long way to fall.”
In his recent tweet on November 19, 2022, Peter Schiff wrote about Bitcoin. He noted that the most-traded cryptocurrency, “Bitcoin is only down with 1%. And the Grayscale Bitcoin Trust is down 7%. It’s trading at a 46% discount to its reported NAV. This could be the next shoe to drop. Maybe $GBTC lost some, or most of its Bitcoin. The market is indicating a major problem. This isn’t good for Bitcoin.”
After the following tweet, LuckSide Crypto, a Crypto Enthusiast, replied to Mr. Schiff that “his comments are misguided and irresponsible. Down 76% from the current top but still up 1M% from the bottom.” He also advises Mr. Schiff to act like he is not new here.
On the other hand, a twitter user asked him to “explain why GBTC trades at such a steep discount compared to owning BTC directly?”
In response to a comment in which the twitter user stated that “nothing has been good for bitcoin since it started and it’s still going strong,” Mr. Schiff replied as “But what measure is it going strong? It’s down 76%. The vast majority of people who own it are losing money.”
Peter Schiff: “Bitcoin is already trading well below $10K”
In continuation, he added that “Based on GBTC’s 43% discount to NAV, Bitcoin is already trading well below $10K. I think this is the real price of Bitcoin, as when you sell $GBTC you get paid real cash. But when you sell BTC you get paid Tether. To get actual cash for Bitcoin you must accept a huge discount.”
He further said that “$GBTC is trading at a 46% discount now. New record. Something is definitely going on. Bitcoin is in real trouble.” He suggested getting out of this situation.
However, he assumes the possibility that “Maybe $GBTC loaned Bitcoin out, and now the borrower can’t repay the loan. That means the NAV is really a lot lower. Maybe that’s what the discount is indicating. Or may it stored its Bitcoin with a custodian that lost it.”
Mr. Schiff also predicted about the U.S. recession, as he mentioned in his tweet that “Oct. U.S. Leading Economic Indicators fell 0.8% to 114.9, twice the forecast decline. This is the 8th consecutive month that leading economic indicators have declined. If the U.S. is not already in a #recession, this certainly indicates that one is coming.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
