The long-time Bitcoin skeptic and gold-bug took to Twitter to announce that Bitcoin is a sinking ship that should be abandoned "before the bottom drops out." He points to the price trend of the pioneer cryptocurrency to support his assertion.
According to Schiff, investors should not be fooled into thinking that BTC has reached a bottom by the fact that Bitcoin has been trading near $20,000 for the past 12 days. The range is only a decoy to bring on more "suckers" as markets that have reached bottoms rarely spend much time there before climbing.
"Markets rarely give investors much time to buy the bottom. #Bitcoin has been trading near $20K for the past 12 days. More likely $20k will prove to be a false bottom, giving suckers plenty of time to climb aboard a sinking ship. Better to abandon ship before the bottom drops out," he wrote in the tweet.
In a follow-up tweet, he recapitulated that not only is Bitcoin crashing, but its market dominance has also been dropping massively. Bitcoin's dominance, around 32% at the time of writing per data from CryptoRank, was its lowest level since June 2018 he noted. Adding that the asset is likely to lose even more market share to the more than 21,000 other "intrinsically worthless" cryptocurrencies, NFTs, and crypto-related equities.
This is not the first time Schiff has called for investors to abandon Bitcoin. The economist expects Bitcoin to ultimately fall to zero and has been very vocal in opposing the narrative that Bitcoin is an inflation hedge or digital gold.
Meanwhile, the price trend of Bitcoin in 2022 has given its critics more reasons to be skeptical. According to a Bloomberg report, the flagship digital currency has been trending towards touching its 2022 low of around $17,500 in the past few days.
The report notes that Bitcoin has been unable to shake off global macroeconomic pressures such as surging interest rates. Bitcoin is down 55.3% year to date and is currently trading at around $20,700. Following the lead of BTC, the crypto market capitalization has also fallen below $1 trillion. Regardless, Bitcoin proponents remain confident that Bitcoin will rally in the long term.