Bitcoin (BTC) Bear Market is Here, Warns Peter Schiff—Here’s Why

Peter Schiff, a prominent critic of cryptocurrencies, is raising concerns about Bitcoin, suggesting that it is currently in a bear market. He highlights that Bitcoin has significantly underperformed compared to gold, with its price dropping by approximately 40% since reaching its peak nearly three years ago.

In a direct message to Bitcoin investors, Schiff emphasizes that the ongoing struggles of the digital asset may reflect a broader misunderstanding of market realities. Although Bitcoin is currently maintaining a critical support level around $60,000, he believes this situation is likely temporary.

Schiff argues that Bitcoin’s weakness relative to gold is becoming more pronounced, especially as global macroeconomic factors continue to weigh heavily on riskier assets like Bitcoin. However, data from Glassnode presents a more nuanced view of Bitcoin’s recent market movements.

Since the start of January, about 4-5% of net capital inflows into Bitcoin can be traced back to U.S. spot exchange-traded funds (ETFs). The entry price for these ETFs ranges from $54,900 to $59,100, and many institutional investors nearing this break-even point may feel pressured to sell if Bitcoin’s price drops below these thresholds. This scenario suggests a fragile outlook for the cryptocurrency.

Despite the current support level of $60,000, Schiff advises investors to reconsider their optimistic positions, as the overall market trend remains uncertain. Key price levels to monitor are $59,000 on the downside and $64,000 on the upside. A drop below $59,000 could signal further bearish sentiment, while surpassing $64,000 might restore hope for a broader recovery. Ultimately, only time will reveal the true demand for Bitcoin.