During another rage-tweeting spree, Euro Pacific Capital CEO Peter Schiff is predicting the collapse of Bitcoin.
He admits that he likes riling crypto Twitter up, but this apparently won’t last for too long since the cryptocurrency that started it all doesn’t have much time left to shine.
I admit I like to rile you guys up. Once #Bitcoin collapse I won't be able to do it as much. So I need to make hay while the sun shines, as it won't shine for long.— Peter Schiff (@PeterSchiff) May 5, 2020
A bearish case for the halving
Searches for this year’s Bitcoin halving have so far quadrupled compared to 2016, with only five days left until the big event.
Schiff is also keeping tabs on the much-anticipated supply cut that has historically led to enormous price appreciation.
The gold bug says that being long on the brink of the halving is the most obvious consensus trade, which is why it will probably fail. He is certain that there is no demand to push the price higher.
Everyone assumes that #Bitcoin miners will double their ask once mining rewards are cut in half. But if demand was there, prices would have already adjusted. In reality, reduced rewards for mining just as speculative pre-halving Bitcoin demand fades, means trouble for miners!— Peter Schiff (@PeterSchiff) May 5, 2020
Why Schiff might be right
While hardly anyone takes Schiff’s doomy Bitcoin tweets seriously, there might be a grain of truth in his halving call.
Back in 2016, there was no immediate rally after the supply-changing event. The BTC price fell nearly 30 percent from July 9 to Aug. 2 (from $660 to $465) before slowly grinding higher and higher.
According to Bloomberg’s crypto skeptic Joe Weisenthal, the disillusionment surrounding the halving could produce a big bear market.