Economist Peter Schiff Says Buying Bitcoin at $10,000 is a Bad Idea

Bitcoin and USD

Bitcoin is seeing quite the increase in value over the last several months, but economist, libertarian and commentator Peter Schiff says that buying Bitcoin at $10,000 per coin is going too far. He might already be proving himself right. Within a day or two after tweeting at famed Conservative commentator Alex Jones that urging his listeners to buy Bitcoin at $10,000 is greedy, the price of a Bitcoin has dropped 10%.

While many technical traders and whales are suggesting that this is simply the end of a short bull run and that the bears are temporarily in control, others are suggesting that whales are manipulating the market and that Bitcoin is on its way back up.

Time will tell which side prevails, but the most recent Twitter back and forth between Schiff and Alex Jones demonstrates that what Bitcoin’s price will do next is not only always a polarizing argument up for debate, it’s really difficult to predict.

Where The Bitcoin Price Stands Now

As of February 27, 2020, the Bitcoin prices at around $8,892 USD. Prior to Schiff’s comments, the leader of the cryptocurrency pack was valued at nearly $10,400 USD. The current sub $9,000 price point is believed to be the next major hurdle for bears that want to drive the price back down. But it’s the erratic “Bart Simpson Pattern” that suggests broader market manipulation might be at play here.

Think about it logically. Bart Simpson’s hair is a bunch of up-and-down lines stacked all in a row. A candlestick chart that looks the same way implies that the price is constantly moving up and down between two clearly defined points over and over again.

For any commodity or market to move up and down in such a quick fashion repetitively implies manipulation by whales who can control the supply and demand of Bitcoin and other cryptocurrencies simply because they own a large supply themselves. Large enough to move the market.

Consider the fact that just today, the price of Bitcoin move between $9600 USD and $10,300 USD in a matter of just 45 minutes. Such a move requires hundreds of millions of dollars to change hands in a matter of minutes making bets on the downside, and then immediately flipping those bets to a bullish position. It does seem quite odd.

What Schiff’s Critics and Alex Jones Are Essentially Saying

The bullish argument for Bitcoin in 2020 rests on the fact that the network’s halving event is scheduled to take place sometime this spring, most likely in May. That will drive down the supply of bitcoins available to the open market considerably (in half to be exact) due to the fact that the networks algorithm is pre-programmed to reduce supply and increased demand at various increments throughout Bitcoin’s life in order to preserve the value of the network.

The other reason critics bring up in favor of their bullish stance is the fact that Bitcoin is seeing its best run since the end of 2017. Of course everybody knows what happened at the beginning of 2018. The market crashed.

So the question is, whether the current trend in Bitcoin is a sign of market manipulation or not, who is right? Will Alex Jones’s followers and the millions of bulls around the world currently holding their position be right about the impact of the halving event on the price of Bitcoin? Or will Peter Schiff be correct in proving the bulls are being greedy and that the price it’s on to way down in spite of the upcoming halving event or the most recent bull run.

Only time will tell but right now it appears the bears are in control. How long they stay in control and whether or not the switch flips again is anybody’s guess. Just don’t look to Bart Simpson or his candlestick pattern for the answer.

Jack Choros byline

Jack Choros

Jack first invested in Bitcoin in 2016 and continues to gamble with it to this day. He loves the Toronto Raptors as much as he loves cryptocurrency. Jack’s work has appeared on ESPN Radio, Yahoo Sports, OddShark.com and many cryptocurrency related publications, namely BTCGG.com.

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