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“Weak hands” will worsen Bitcoin’s decline — Peter Schiff
Well-known Bitcoin critic, investor, and economist Peter Schiff warned that the massive redistribution of Bitcoin from long-term holders to new investors with “weak hands” will lead to deeper declines in the future.
According to Schiff, Bitcoin is experiencing its “IPO moment” — the market now has enough liquidity for long-term holders to lock in profits. “Such a volume of Bitcoin moving from strong to weak hands not only increases the available supply but also means that future sell-offs will be larger,” the expert said.
Large holders are taking profits
In October, whales and other long-term Bitcoin holders sold over 400,000 BTC, creating significant selling pressure. This contributed to Bitcoin falling below $85,000.
Among the notable profit-taking examples is Owen Gunden, one of the earliest long-term Bitcoin holders. In October and November, he sold all 11,000 BTC he owned, worth roughly $1.3 billion.
Robert Kiyosaki, author of Rich Dad, Poor Dad, also announced the sale of all his Bitcoin holdings valued at around $2.25 million. He bought the coins at $6,000 each and sold them at $90,000. He plans to direct the profit into income-generating businesses.
“I remain optimistic about Bitcoin and plan to resume buying using the returns from new investments,” Kiyosaki said.
Experts are divided
The current downturn in the crypto market has split analysts and investors regarding the future of the first cryptocurrency. Some believe the bull trend will resume once liquidity conditions improve, while others fear the start of a new bear market.
Analysts at crypto exchange Bitfinex note that strong selling pressure from long-term holders and forced liquidations in crypto derivatives markets are the main drivers of the short-term decline. At the same time, Bitcoin’s fundamental metrics remain strong and attractive to institutional investors, who will continue adopting BTC and supporting demand.
However, retail investors are likely to sell Bitcoin at the first signs of trouble, warns Vineet Budki, CEO of venture firm Sigma Capital. In his view, the lack of conviction among retail investors could lead to a 70% price drop in the next bear cycle.
See also: "Arthur Hayes Issued a Forecast for Bitcoin’s Short-Term Price Movement"
