## U.S. Economist Peter Schiff Predicts Bitcoin Crash to $75k
Economist and prominent cryptocurrency critic, Peter Schiff, recently reiterated his negative stance on Bitcoin (BTC). Schiff took to social media on August 26 to caution that the price of “digital gold” could potentially plummet to $75,000, advising investors to sell now and consider re-entering the market at lower levels.
### Schiff’s Warning and Analysis
Schiff’s tweet highlighted Bitcoin’s recent drop below $109,000, indicating a 13% decrease from its recent high less than a fortnight ago. Despite significant corporate investments and widespread hype, the economist expressed concerns about the ongoing weakness in Bitcoin’s price. Schiff emphasized the likelihood of a potential decline to around $75,000, just slightly below the average cost of MicroStrategy’s (MSTR) Bitcoin holdings.
### Bitcoin Price Movement and Industry Developments
Bitcoin’s price dipped below $109,000 on August 25, alongside Michael Saylor’s MicroStrategy (NASDAQ: MSTR) revealing the acquisition of 3,081 BTC valued at approximately $357 million. This purchase, at an average price of $115,829, increased MicroStrategy’s total Bitcoin holdings to approximately $69.6 billion.
### Factors Contributing to Bitcoin’s Volatility
Schiff attributed the recent price fluctuations to a substantial 24,000 BTC sell-off by a major player in the market, leading to significant liquidations. With Bitcoin’s price potentially nearing MicroStrategy’s average acquisition cost, Schiff questioned the sustainability of Bitcoin’s long-term value and viability.
### Analysis of Market and Macro Factors
The market also witnessed additional volatility following Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium. Bitcoin briefly surged by 4% in response to perceived labor market risks, only to experience a swift downturn shortly after.
### Conclusion
Peter Schiff’s cautionary analysis warns of a potential Bitcoin crash to $75,000, emphasizing the importance for investors to consider their positions in light of the current market dynamics. As the cryptocurrency landscape continues to evolve, staying informed and proactive in investment decisions remains crucial for navigating the volatile digital asset market.
*Featured image via Shutterstock.*