Gold bug and economist Peter Schiff, who is well known for his vocal criticism of cryptocurrencies, especially Bitcoin, advises BTC holders to hurry and sell their BTC.
He warns that a "wave of blockchain-related bankruptcies will soon crash down on cryptocurrencies, turning the crypto winter into a deep freeze."
If #crypto really is the future, why is #Silvergate, the premier crypto bank already a thing of the past? A wave of #blockchain related bankruptcies will soon crash down on #CryptoCurrencies, turning the crypto winter into a deep freeze. Hurry, sell your #Bitcoin and buy #gold.— Peter Schiff (@PeterSchiff) March 10, 2023
Peter Schiff's son, Spencer Schiff, a Bitcoin proponent, replied that Bitcoin is a lifeboat and will not sink with some bad occurrences.
San Francisco-based company Silvergate, which has offered banking services to crypto companies since 2013, including the failed FTX exchange, said on Wednesday that it was winding down operations, citing "recent industry and regulatory developments."
Yet during the past two weeks, as news of Silvergate Bank's problems broke, Bitcoin has been declining. The sell-off worsened overnight as Bitcoin slid below the $20,000 mark for the first time since January.
Bitcoin (BTC) is down 8.21% over the past day and 11.24% on the week, as the leading cryptocurrency slid to a near two-month low of $19,791 in the early hours of Friday. The majority of cryptocurrencies have meanwhile suffered significant losses on the daily and weekly timeframe.
Recall that Peter Schiff recommended that holders of Bitcoin sell in January as the price reached $18,000, in advance of the first CPI data release of the year.
When Schiff issued his statement of caution, Bitcoin had risen from a low of about $16,000 in late December to over $18,000.
On the contrary, Bitcoin increased in value by 37.2% following Schiff's recommendation to sell it. Before the rally somewhat stalled in mid-February, Bitcoin bulls drove prices up to highs of $25,270.