Bitcoin Critic Peter Schiff Predicts $20K BTC Price Drop, Here’s Why
Amid rising geopolitical tensions and a new escalation in the Israel-Iran conflict, Bitcoin (BTC) price is facing strong selling pressure, falling below $62,000. Since then, BTC price has partially recovered and is currently trading at $64,111. Interestingly, Bitcoin critic Peter Schiff predicts a massive drop in Bitcoin prices, adding that the world’s largest institutional Bitcoin holder, Microstrategy, is facing a staggering $2.7 billion loss.
Bitcoin Price Collapses Below $60,000
Peter Schiff issued a strong warning regarding the price of the cryptocurrency, emphasizing the importance of the $60,000 level as critical support.
Schiff highlighted the possibility of a formidable triple top formation if Bitcoin falls decisively below the $60,000 level. According to his analysis, such a breach could trigger a downward spiral, with a downside target of $20,000 predicted.
In addition to broader implications for Bitcoin, Schiff also noted potential financial implications for MicroStrategy ($MSTR), a leading company heavily invested in Bitcoin. If Bitcoin falls to $20,000, Schiff estimates that MicroStrategy faces a staggering $2.7 billion unrealized loss on its holdings of 214,000 Bitcoins purchased at an average price of $34,000.
Gold enthusiast Schiff has predicted Bitcoin’s doom several times in the past. However, Bitcoin bulls’ strong undercurrent thesis has been invalidated several times. On the other hand, MicroStrategy chairman Michael Saylor maintained his composure despite the current turbulence, adding that chaos is always good for BTC.
Bitcoin, and the cryptocurrency market more broadly, faced a similar geopolitical situation in February 2022 when the Russian-Ukrainian special military operation broke out. However, after some initial turbulence, the market rebounded even more strongly.
Buy BTC Bottoms
According to crypto analyst Rekt Capital, Bitcoin price has been in the “Danger Zone” for the last 23 days, signaling a historical pattern before the Halving events. With only 5 days left until the halving, Bitcoin experienced a decline of -18% in March and -15% in April.
Historically BTC has tended to pull back Pre-Hallowing approximately 14 to 28 days before the Halving event. In the 2020 Halving, this pullback reached a depth of -20%. Similarly, during the 2016 Halving, Bitcoin experienced a more significant pullback of -40%.
These trends highlight the potential for significant price swings leading to halving events, a phenomenon that investors should monitor closely. The analyst also noted that the opportunity to buy dips in Bitcoin will not last long enough.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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