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Terra (LUNA) Shows Big Breach in "Buy the Dip" Concept: Peter Schiff

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Fri, 05/13/2022 - 10:45
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Yuri Molchan
Bitcoin critic Peter Schiff explains why LUNA confuses the concept of buying the dip for crypto overall
Terra (LUNA) Shows Big Breach in "Buy the Dip" Concept: Peter Schiff
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CEO of Euro Pacific Capital and gold investor Peter Schiff has taken to Twitter to comment on the recent collapse of LUNA to zero.

He has likened Bitcoin to Terra and said that LUNA has compromised the "buy the dip" concept for the whole cryptocurrency market.

"This can happen to any crypto"

Schiff tweeted that the case of Terra's LUNA and its stablecoin, UST, that lost its peg recently (and the Terra blockchain has been halted) has provided a great example of why investors should not buy the dip of cryptocurrencies.

He pointed out that on May 12, LUNA plunged 98% from its recent peak of $116. He addressed the tweet to those who rushed to buy LUNA on the dip and lost another 99.3% earlier today.

This can be the case with any digital currency, he tweeted, including Bitcoin.

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Schiff likens Bitcoin to LUNA

While replying to a comment from a Twitter user, Schiff mentioned that things for LUNA have changed, almost instantly becoming as bad as possible. The same may well happen to Bitcoin, he added, since the concept here is the same; this week people like Bitcoin and "next week they may not."

Bitcoin recovers after losing $31,750 mark

The collapse of Terra's stablecoin, UST, and its native token, LUNA, pushed the flagship cryptocurrency, Bitcoin, further down. On May 12, BTC fell 17.31%, reaching a low of $26,250.

By now, the digital gold has been up by 15.61% and is changing hands at $30,272.

Earlier this year, Schiff tweeted that he expected Bitcoin to go below $10,000 should it break significantly below the $30,000 level.

Bitcoin_30k_00bnmkhjksdSchiff
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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.