Economist and gold advocate Peter Schiff is urging bitcoin holders to sell now, warning that BTCs slide below $75,000 leaves only “a short window before the crash.”
Key Takeaways
- Peter Schiff told holders to sell bitcoin on Nov. 9 as BTC traded below $75,000 while stocks and gold rose.
- U.S. spot bitcoin ETFs lost $1.28B last week, their biggest weekly outflow in about four months.
- Bitcoin closed below its 50-week average after 7 weeks, putting Tuesdays CPI report in focus.
“Make Sure to Sell”
Schiff spelled out his case on X on Monday as markets diverged, stating:
“In case Bitcoiners haven‘t noticed, the stock market is up big today, including tech and precious metals mining stocks, plus gold and silver. Yet Bitcoin is down again, trading below key support at $75K. There’s a short window before the crash. Make sure to sell before it closes.”
“In case Bitcoiners haven‘t noticed, the stock market is up big today, including tech and precious metals mining stocks, plus gold and silver. Yet Bitcoin is down again, trading below key support at $75K. There’s a short window before the crash. Make sure to sell before it closes.”
He doubled down in a reply later that day. “Its undeniable that Bitcoin is going much lower. Sell it now before it does,” Schiff said.
The Divergence Schiff Is Pointing to
Schiffs assertion is that bitcoin is failing a test that other assets are passing, and since the midterm elections, U.S. stocks are basically flat, and bitcoin is down more than 4%. At the same time, gold is up more than 5%, silver almost 7%, and gold mining stocks more than 18%. As a result, he wrote:
This is a sign of things to come. Invest accordingly.
This is a sign of things to come. Invest accordingly.
Mondays trading fit that pattern as gold rose about 1.7% to settle at $4,141.14 an ounce; Bitcoin, by contrast, dropped to $73,477 as more than $1 billion in leveraged bets were wiped out. It later struggled below $75,000 and was trading near $74,600 at the time of writing.
Schiff Has Been Calling This Level for Weeks
Schiff has been circling the $75,000 mark for over a month, and on Oct. 24, with bitcoin just below $80,000, he said “the next stop is likely $75K” and warned that exchange-traded fund (ETF) holders faced “a very long weekend” because they could not sell until Monday. A week later, after gold‘s own sharp drop, he called the metal’s selloff “an unexpected gift” for investors to buy more.
Bitcoin reached his target this week, and its next move will show whether his crash call fares as well. Selling pressure is also coming from miners, with MARA disclosing on Monday that it sold 13,597 BTC after the third quarter to repay $750 million in loans.
Several Signals Support Schiffs Caution
U.S. spot bitcoin ETFs posted $1.28 billion in outflows last week, the largest weekly outflow in about four months. Bitcoin also closed below its 50-week moving average, ending a seven-week run of closes above it that had held even after Binances $6.3 billion hack.
Additionally, analyst Benjamin Cowen, who had argued all year that falling equities would drag bitcoin lower in the fourth quarter, stated that he sees more pain ahead for crypto.
That said, the bulls are not giving up, and analyst Sean Hagan called the current level “an excellent buying opportunity” for long-term believers.
Positioning in the derivatives market also leans against Schiffs call, and about $1.3 billion in short positions would be liquidated if bitcoin climbed back to $79,000, compared with about $400 million in long risk down to $72,000.
Lastly, Ark Invest‘s Cathie Wood has also taken the opposite side of Schiff’s stance late yesterday, saying “gold is going down” and arguing that bitcoin will keep gaining on it.
Bitcoin Price Struggles Below $75K as $1.2B in Crypto Bets Get Wiped Out
Bitcoin struggled to recover from a weekend sell-off that pushed its price below $74,000, briefly rebounding above $75,400 before renewed…
Bitcoin Price Struggles Below $75K as $1.2B in Crypto Bets Get Wiped Out
Bitcoin struggled to recover from a weekend sell-off that pushed its price below $74,000, briefly rebounding above $75,400 before renewed…
Bitcoin Price Struggles Below $75K as $1.2B in Crypto Bets Get Wiped Out
Bitcoin struggled to recover from a weekend sell-off that pushed its price below $74,000, briefly rebounding above $75,400 before renewed…
About the author
WRITTEN BYShiraz JagatiCrypto Reporter
Shiraz is a journalist and analyst whose work has covered the digital asset arena and blockchain-related developments since 2016.