Peter Schiff, a well-known Bitcoin critic, thinks the hype about institutional investors buying Bitcoin is overblown. He points to the recent price drop as evidence.
Schiff’s Argument:
Schiff says that the recent sell-off, which saw Bitcoin’s price drop by 10% in a single day, shows that there isn’t as much institutional demand for Bitcoin as people think. He argues that if there were, institutions would have jumped at the chance to buy up the massive amount of Bitcoin that was dumped on the market.
What Happened?
- The German and US governments, along with the bankrupt crypto exchange Mt. Gox, have been selling off Bitcoin.
- The German government has been selling a significant amount of Bitcoin every day since the start of July.
- This selling pressure pushed Bitcoin’s price down from around $60,000 to as low as $53,000.
Schiff’s View:
Schiff believes that the recent price slump proves that the hype about institutional demand for Bitcoin is exaggerated. He thinks that people are overestimating the role of institutions in the Bitcoin market.
A Different Perspective:
Another analyst, Rekt Capital, thinks Bitcoin is poised for a rebound. He points to the fact that Bitcoin closed its daily trading above a key support level, suggesting that the price could soon bounce back. He believes Bitcoin could rise as high as $71,000.
What’s Next for Bitcoin?
It’s still too early to say whether Schiff or Rekt Capital is right. The Bitcoin market is volatile, and prices can fluctuate rapidly. However, the recent price drop has raised questions about the true level of institutional demand for Bitcoin.
