Peter Schiff comments on Bitcoins current price
Bitcoin experienced a decline in price on Thursday as the negative sentiment in the cryptocurrency industry persisted, accompanied by the German government’s decision to sell more tokens.
The value of the BTC token dropped to its lowest point since May 1st, reaching $59,918. This decline of 20% from its peak this week has also pushed Bitcoin into a technical bear market.
Peter Schiff, a well-known figure in the financial industry and a Bitcoin bear, continued to express his concerns about the cryptocurrency. In a recent post, he warned that Bitcoin would experience a significant drop if it lost a crucial support level.
Schiff’s skepticism towards Bitcoin aligns with the findings reported on Wednesday, which identified $56,534 as a critical support level. This price represents the neckline of the quadruple top pattern at $71,780 and also corresponds to the 200-day moving average level. Therefore, if this support level is breached, there is a likelihood that Bitcoin will drop to the psychological level of $50,000, followed by $44,000.
The sell-off of Bitcoin intensified after on-chain data revealed that the German government is continuing to offload its Bitcoin holdings. It recently transferred 3,000 coins to Bitstamp, Coinbase, and Kraken, with the current value of this tranche exceeding $174 million. The German government now possesses 40,359 coins valued at over $2.3 billion, which it is expected to liquidate.
Germany is not the only entity selling its Bitcoin. There are indications that Bitcoin miners have started capitulating by selling their holdings. Julio Moreno, an analyst at CryptoQuant, noted that these companies would begin capitulating if Bitcoin encounters strong resistance.
Furthermore, there are indications that the US government will initiate the sale of Bitcoins worth over $9 billion, which are associated with Mt.Gox, an exchange that collapsed in 2014.
All of these developments are occurring alongside the continuous rise in the amount of Bitcoin balances held in exchanges in recent days.
Another risk factor is related to US politics, where the consensus view suggests that Joe Biden will step down and be replaced by a more formidable candidate. Potential candidates, such as Kamala Harris, Gretchen Whitmer, Gavin Newsom, and Michele Obama, have a chance to defeat Donald Trump, who is perceived as a more cryptocurrency-friendly presidential candidate.
Simultaneously, Bitcoin’s open interest in the futures market has continued to decline, which is considered a bearish signal.
