Peter Schiff is known for its bearish hold on leading cryptocurrency Bitcoin (CRYPTO: BTC).
The economist and global strategist talked about several topics, including Bitcoin and gold during a recent interview with Bitcoin bull Anthony Pompliano. Here are some of the highlights.
What happened: Schiff told Pompliano that Bitcoin exploded and had one of its worst years in 2022, but the worst may still be ahead.
Schiff said Bitcoin had a bounce in 2023 due to a bear market rally and the potential for shorts to cover, creating some buying and some speculation in the market.
“The reason it had a big bounce in January is because it was destroyed in 2022,” Schiff said.
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Schiff added that there may be some speculation in the potential for more bear market bounces.
“Bitcoin was $70,000 and it went to $16,000, maybe it will go to $25,000, $30,000, that’s a good return.”
Schiff noted that many would also see that as a good return.
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What’s next: During the hour-plus interview with Pompliano, Schiff reiterated his long-held belief that Bitcoin has no value and will eventually be worth $0.
“The drive to $0 is not going to be in a straight line,” Schiff said, prompting Pompliano to smile and let out a small laugh.
Schiff warned the losers from 2022 that Bitcoin and cryptocurrency-related stocks could lose again in 2023.
“I think they are all going to make new lows, the FAANG stocks as well.”
Schiff said the declines for Bitcoin and high-growth stocks could come in early 2023.
The year 2022 saw a shift from momentum to value, which Schiff said is why his company Euro Pacific Asset Management did so well.
Schiff said the two key strategies of Euro Pacific are dividend-paying and value stocks, and mostly avoiding technology stocks.
“These strategies will thrive again and they will do even better (in 2023),” he said, adding: “They exploded and I don’t think they’re done exploding.”
Schiff said the dollar is going to be killed in 2023, which could be one of the worst years ever, before also predicting that 2024 will be even worse.
Pompliano asked Schiff if the comments on the dollar’s weakness could be good for Bitcoin.
Schiff said there are too many wild cards when it comes to Bitcoin, including the biggest wild card in the Grayscale Bitcoin Trust (OTC:GBTC).
Schiff warned that many companies could go bankrupt and have to sell assets.
“There are so many potential bombs that could go off in the crypto space. I wouldn’t consider it a safe haven, so much risk.”
Schiff also said that most people who own Bitcoin are losing money, since they didn’t buy until 2021 or 2022, and they are down 50% or more.
“Imagine when Bitcoin goes below $10,000, a lot of people will sell.”
BTC Price Action: Bitcoin is trading at $23,966.23 at the time of writing against a 52-week trading range of $15,599.05 to $48,086.84.
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Photo: Mohamed Hassan from Pixabay
