Peter Schiff says Bitcoin will break down

Well known financial analyst Peter Schiff recently tweeted that risk assets would “break down hard”, stating that they would be “led lower by Bitcoin.” 

Peter Schiff, economist, analyst, and vehement critic of Bitcoin, has recently tweeted that it is his belief that risk assets would be coming down hard, and that Bitcoin would lead this drop.

I think risk assets will soon breakdown hard, led lower by #Bitcoin. #Inflation hedges are about to breakout, lead higher by precious metals miners. As I titled my last podcast, #gold stocks are the new tech #stocks. Either prepare for this new reality or suffer the consequences.

— Peter Schiff (@PeterSchiff) April 3, 2023

Schiff is extremely vocal on his dislike of Bitcoin and has always maintained that the number one crypto currency will eventually go to zero.

Schiff is very well respected in financial circles, and is always appearing in interviews and discussions, where he gives his views on the economy and other financial matters.

He is a well known proponent of gold and is heavily invested in this asset. It might be argued that Schiff’s dislike of Bitcoin could very well be as a result of this cryptocurrency being labelled by many as “digital gold”. 

Bitcoin has quite likely diverted much wealth that would have traditionally gone into gold, and has attracted this wealth to itself, thereby potentially dampening the rise of gold, which has always acted as a hedge in economic downturns.

In a reply to Schiff’s tweet, a twitter user suggested that diversification into both gold and Bitcoin surely wasn’t a bad idea in the current changing economic times, and that both gold and Bitcoin may well be the right move, at least for the time being.

If #Bitcoin doesn’t follow your narrative over the course of this next year will you admit to a new reality? Respectfully, further diversification during these changing and evolving times may be the responsible move. Maybe both cases are right, at least for quite a while.

— Matt (@mrduste23) April 4, 2023

It would appear that despite Schiff’s repeated calls for Bitcoin to go to zero, it does not look like this is going to happen any time in the immediate future.

Bitcoin is currently holding strong in a range between $26,600 and just under $29,000. A breakdown is certainly on the cards given that the price has been unable to break through the upper resistance, but Bitcoin has been knocking on this door for more than two weeks now, and a break to the upside could well happen.