Peter Schiff, a staunch Bitcoin critic, warned investors against holding the crypto asset at current levels.
According to him, those who fail to offload their BTC stash at the current value above $60K could incur heavy losses.
Many people, myself included, regret not buying Bitcoin when they first learned about it. Soon, more people will regret not selling Bitcoin above $60K when they had the chance.
Despite his regret, Schiff claimed that he won’t buy BTC even if its price drops 3x, noting that “$20K is way too much to pay for nothing.”
Although Schiff didn’t share the bearish catalysts that could drag BTC lower, other analysts expressed similar caution.
Why fragile macro could stall Bitcoin’s rebound
Bitcoin’s price has been up about 11% in July. It has bounced from a low of $57.8K to nearly $65K, unfazed by Strategy’s BTC sale thanks to improved macro conditions after softer CPI data this week.
However, analysts are cautious that the macro relief could be temporary, as renewed U.S-Iran escalations could dent energy markets and risk appetite again. Additionally, there has been a crypto-specific catalyst to fuel further rally, noted Bitfinex analysts.
We had not seen any Bitcoin-specific demand before the inflation print: the ETF complex sold $424.7 million on 13 July, Strategy bought nothing, and the Coinbase premium is still negative.
This meant that, on average, there was no marginal institutional demand for BTC despite the macro relief. The analysts cautioned that BTC’s relief bounce was a ‘borrowed strength.’
A rally built on a macro catalyst, with limited spot absorption and no price-agnostic bid, that had been a constant in previous uptrends for BTC, is ‘borrowed strength’ that the lender can call back.
A potential capital rotation from AI to crypto was previously viewed as a potential positive catalyst alongside the passage of the CLARITY Act. But the crypto bill has stalled, and the AI sell-off could affect crypto, per QCP Capital.
The bullish setup is not an AI unwind; it is AI stabilisation followed by a crypto-specific catalyst.
Where could Bitcoin trade next?
QCP projected Bitcoin [BTC] could remain range-bound within $60K-$75K, adding that there was a notable hedging against a potential dip to $55K-$58K.
Our base case for BTC is range-bound; the bull case needs lower real yields, stronger ETF inflows and regulatory progress; the bear case is a decisive break below support on continued outflows.
The price chart also painted a similar projection. The $65K-$67K was a short-term sell zone, and another overhead hurdle was at the 200-day Moving Average (MA, blue line, $73.4K). Failure to clear these obstacles could increase the chance of dipping to $60K or below.
Final Summary
- Peter Schiff urged investors to sell their BTC holdings, warning that the price will drop below $60K.
- His caution was warranted, as macro, regulatory, and spot BTC ETF demand were not aligned to support a sustainable risk appetite.
