Peter Schiff Mocks Bitcoin Crash: “HODLers Are in Denial”

• Bitcoin took a major hit in the weekend crypto market crash.
• Crypto critic Peter Schiff is taking shots at the asset once again.
• Not everyone shares the same sentiments as Schiff.

Over the past three days, the crypto market has plunged into a pool of red, marked by sharp price declines across various assets. Bitcoin took one of the hardest hits, slipping through key support levels and reaching new price lows.

The sharp decline has reignited criticism from skeptics, including vocal Bitcoin naysayer and gold bug Peter Schiff.

Crypto Crash Triggers Fresh BTC Blast from Peter Schiff

Weighing in on the recent market downturn , Schiff argued against the potential of Bitcoin, stating that the asset has been in a prolonged bear market for nearly three years. The gold advocate condemned BTC holders for being in denial about the true state of the market, stating that they continue to cling on despite its significant and prolonged declines.

Schiff asserted that Bitcoin, when measured against gold, has plummeted in value by 34% since its November 2021 peak, underscoring a decline in its real purchasing power. He added that this price instability demonstrates the unlikelihood that governments or banks adopt BTC as a reserve asset, stating that it fails to meet the criteria for reserve assets to maintain stability and liquidity. 

Continuing his criticism, Schiff argued that the financial media understated the extent of the latest losses. He believes that the media’s focus on short-term drops misleads investors about the true scale of the downturn, adding his expectations for the ongoing decline to extend further upon market movements by ETF investors.

However, while Schiff continues his advocacy against crypto, others support the asset class.

“Believe in Bitcoin:” Michael Saylor

Contrasting the ‘no-crypto stance’ adopted by critics like Peter Schiff amid present market conditions, MicroStrategy chairman and Bitcoin advocate Michael Saylor has reiterated his support for the crypto giant.

In a post to social media platform X, Saylor shared a meditating-like image with the caption, “Believe in Bitcoin.” He tweeted again, urging investors to continue to “HODL,” the world’s largest crypto asset.

While brief, Saylor’s messages build on his long-term image as one of Bitcoin’s biggest supporters, as evidenced by MicroStrategy’s expanding Bitcoin portfolio and his relentless advocacy for the asset class. 

Both posts have since garnered over 41,000 reactions from the MicroStrategy chair’s millions of followers, with many supporting Bitcoin.

On the Flipside

• At press time, BTC is trading at $51,153, down 16.15% in the past 24 hours and a staggering 30.2% from its all-time high of $73,000.
• On Friday, August 2, 2024, Morgan Stanley became the first major bank to approve Bitcoin for solicited sale to clients.

Why This Matters

Despite its growing influence, traditional economists such as Peter Schiff have refused to acknowledge the potential of Bitcoin, often capitalizing on its weaknesses to reinforce their stance. However, given the crypto market’s history of volatility and rebounds, Schiff’s criticisms are unlikely to hold much weight. 

Read this article for more about Peter Schiff’s criticisms of Bitcoin:
Bitcoin Soars Against Gold: “Cruel” 10 Years Ahead for Peter Schiff?

The recent market crash led to the re-emergence of a crypto hacker; read more here:
Nomad Bridge Hacker Leverages Ethereum’s 33% Crash, Buys the Dip