2022-08-13 17:57:00
Head of Euro Pacific Capital predicts bitcoin to fall to $10,000What happened? Peter Schiff, head of brokerage firm Euro Pacific Capital, believes that the bitcoin rate will not be able to reach new highs, and will probably continue to fall to the $10,000 mark and below.
In his opinion, the current growth of the crypto market, including Ethereum's 70% rise in price, is not sustainable. Schiff said this in an interview with Kitco News.
Interview with Kitco NewsWhat else is Schiff talking about? He added that the market will continue to fall, so investors should take advantage of the rally they have now. Schiff noted that there is a bubble in the crypto market, even though bitcoin is down about 65% from its all-time high (ATH).
"A lot of people are still in profit in these tokens. Someone bought bitcoin four, five, six years ago and it's in good profit. It's the same with Ethereum. People have to go because otherwise the market will take those profits," Schiff stressed.
He also believes the sell-off in the crypto market in 2022 reflects the massive use of the Pump & Dump ("pump and dump") scheme. The broker referred to the fact that many celebrities actively promoted various coins to their subscribers. "It was massive pumping, but people overlooked dumping," Schiff added.
As of Aug. 13 10:20 a.m. Moscow time, the total capitalization of the cryptocurrency market is $1.219 trillion, having added 6.18 percent over the week. BTC trades at $24,674 and ETH at $2006, with the assets adding 6.46% and 16.5% in value respectively during the week, according to Binance.
Schiff also believes shares of analytics software developer MicroStrategy are overvalued. MicroStrategy is the largest bitcoin holder among public companies. Schiff noted that its losses from its BTC investments due to the asset's decline are about $1 billion - the company has 129,699 coins on its balance sheet, purchased for just under $4 billion. "Ultimately, MicroStrategy's share price will collapse well below the level when it first started buying bitcoin," the broker concluded.
The company's securities are traded on the Nasdaq U.S. Stock Exchange under the ticker MSTR. As of Aug. 13, the share price stands at $352.84, having added 4.7% overnight, according to Investing.cöm.
What is known about Euro Pacific Capital? The company was founded in 1980 and is headquartered in Westport, Connecticut. It is a registered broker-dealer specializing in foreign securities markets. Euro Pacific Asset Management, founded in 2009, has $1.2 billion in assets under management.
On May 8, Peter Schiff already speculated that the price of bitcoin could drop below $10,000 if the rate continues to decline past the $30,000 mark. And in June he said he expects the cryptocurrency market to fall further.
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