Renowned Bitcoin critic Peter Schiff has made a bold declaration on social media platform X, asserting that Bitcoin has entered a “bear market territory.” This statement follows a significant drop in the value of the leading cryptocurrency, with Bitcoin hitting a low of $58,456 on June 24, marking its lowest point since May 2.
The recent downturn in Bitcoin’s price was exacerbated by various factors, including substantial outflows from US-based exchange-traded funds and general market pessimism due to macroeconomic uncertainties. Additionally, the German government’s decision to sell a significant amount of Bitcoin further added to the negative sentiment surrounding the cryptocurrency.
Adding to the bearish outlook for Bitcoin, the infamous Mt. Gox exchange, which was hacked in 2014, announced plans to initiate repayments in July. This development is expected to exert additional selling pressure on the market, potentially driving Bitcoin’s price lower.
Although the extent of the selling pressure remains uncertain, Schiff anticipates further downside for Bitcoin before the impact of Mt. Gox’s Bitcoin repayments is fully felt in the market. Despite the recent 20% drop from its all-time high, Schiff contends that Bitcoin’s price correction may not be over yet. “The bear market is still in its early stages,” he remarked.
As industry observers continue to monitor Bitcoin’s price movements and market dynamics, it remains crucial for investors to stay informed and prepared for potential fluctuations in the crypto market.
