Earlier this week, Bitcoin (BTC) experienced a notable drop, plunging to a four-month low of under $77,000. This decline provided gold advocate Peter Schiff yet another platform to critique cryptocurrency holders.
Ethereum (ETH) also faced a downturn, hitting a 17-month low below $1,800. Schiff, known for his critical stance on Bitcoin and cryptocurrencies in general, did not hold back his skepticism regarding the United States government’s decision to hold cryptocurrencies as reserve assets.
Schiff’s Critique of Crypto Traders
Following Bitcoin’s recent dip, which registered a 29% decline from its all-time high of $108,786 early this year, Schiff took to social media to express his views. The cryptocurrency’s price fell to $76,784, prompting Schiff to suggest that many individuals who once identified as crypto millionaires may soon need to seek alternative employment.
“Now there’s another reason to bring manufacturing back to the United States,” he quipped, adding, “A lot of crypto millionaires are going to need jobs.”
Despite such taunts, some analysts believe that Bitcoin’s current correction aligns with historical trends in bull cycles. For instance, in 2017, Bitcoin experienced an average correction of 35%, while in 2021, the correction was about 37%. If these patterns hold, Bitcoin could descend to approximately $70,000 before establishing a stabilization point, a prediction echoed by BitMEX co-founder Arthur Hayes.
Hayes advised traders to “be f***ing patient,” suggesting that reaching a low near $70,000 is a typical phase in the market cycle.
Schiff Calls for Leadership Change at MicroStrategy
Peter Schiff did not stop at criticizing Bitcoin; he also targeted MicroStrategy (MSTR), which has made significant investments in the leading cryptocurrency. Following a substantial decrease in the firm’s stock, which has dropped over 55% since its peak in November 2024, Schiff has called for the ousting of Executive Chairman Michael Saylor, arguing that the company’s Bitcoin acquisition strategy is failing.
“Clearly, the strategy is not working. The company needs a new CEO too. It’s time to fire Saylor,” Schiff stated.
Defenders of Saylor countered by highlighting that MSTR shares surged 1,500% over the last five years and remained up 85% over the past six months. However, Schiff dismissed these claims, asserting that insolvency for MicroStrategy is inevitable. “The company is on its way to bankruptcy,” he asserted.
In a separate commentary, the investment strategist criticized Ethereum and its spot exchange-traded funds (ETFs), which have plummeted 45% since their debut in July last year. As Ethereum recently dipped below the $1,800 mark, a level last seen in November 2023, Schiff’s criticisms seem aligned with the broader market sentiment.
As we navigate these turbulent times in the cryptocurrency market, the insights from experienced figures like Peter Schiff encourage a critical examination of investment strategies and the sustainability of digital assets like Bitcoin and Ethereum.
