Actions speak louder than words – this is how Bitcoin price reacted to the mockery made by Peter Schiff, the CEO of Euro Pacific Capital who has forecasted the orange coin to be “the worst performing asset” of the ongoing decade.
Although time is early for this assumption, the American stock broker has considered the BTC sluggish performance over the past days and its inability to break above the crucial mark of $7,500 as a scene justifying his claims.
Logically speaking, periods of sharp rises are usually followed by spans of wild corrections as prices tend to make a comeback to their mean. Thus, Schiff expects the US equity market and Bitcoin, after their stunning performance last year, to underperform in 2020.
But the drop of the largest cryptocurrency this year will be “faster,” said Schiff.
Early in 2020, Bitcoin failed to go beyond $7,500 for the second time in a few days and continued to record further losses to slightly fall below $7,000.
In one of the rare ironic scenes that crypto fans might have experienced, the coin, few hours later, rallied 6.4 percent to reach the mark of $7,288. At press-time, the price is fluctuating around $7,300 and yet to stabilize.
One of the promising indicators about this rally is its timing as it occurred after news outlets reported that the US president ordered an airstrike that killed the head of the Iranian Revolutionary Guards General Qasem Soleimani.
Usually in times of wars and uncertainty, investors resort to safe havens, definitely including gold that surged on the aftermath. Bitcoin as well showed a similar behavior to place itself as a possible digital safe haven.
However, today’s bullish movement is no more enough to convince Shiff to change his mind easily as the gold bug still classifies such upward waves as a “pump & dump” pattern.
Bitcoin pump & dumpers are losing their mojo. They managed to pump the price by $550 in one minute, a 7.5% spike. Yet the dump reversed the entire pump with an 8% drop in just 7.5 hours. If Bitcoin pumpers can no longer sucker in new buyers the game is over. Look out below!A tweet published by Shiff on 4 December 2019
By definition, the pattern suggests that the price of a security could falsely inflate as a result of untrue or deceptive positive reports in an attempt to sell stocks far beyond the price at which they were bought.
There may be no doubt that nothing will put an end to similar bearish outlooks for Bitcoin but a sustainable true pump that nears the coin, which was named the best investment over the past decade by Bank of America, to achieve its skyrocketing objectives in 2020.