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Economist Peter Schiff has been active against bitcoin for years and is warning investors to stay away from the digital asset. Time and again, the economist has warned that the price of bitcoin would go to zero, and even after being wrong several times, Schiff has not changed his stance on the digital asset. As it should be, he has taken to Twitter to warn investors to stay away from the cryptocurrency.
Peter Schiff Says Sell Bitcoin
On Tuesday, chief economist and world strategist Peter Schiff went on Twitter warn investors again about the ‘dangers’ of investing in bitcoin. He pointed to bitcoin’s recent trend at $20,000, referring to this as a false bottom.
He goes on to say that now is not the time to buy as it is likely that the price of the digital asset will likely continue to fall. His advice during this time was for investors to sell their bitcoin.
“Markets rarely give investors much time to buy the bottom. #Bitcoin has been trading near $20K for the past 12 days. More likely, $20k will turn out to be a false bottom, giving suckers plenty of time to climb aboard a sinking ship. It is better to abandon ship before the bottom falls.”
In a sequel tweetSchiff points to bitcoin’s declining dominance as one reason why it’s not a good option to invest in. According to the economist, it now competes with 21,000 other cryptocurrencies and assets in various areas of the space. So ultimately, all competition affects the value of the digital asset.
BTC dominance drops to 39% | Source: Market Cap BTC Dominance on TradingView.com
BTC loses market share
Bitcoin’s market share has fallen sharply in recent years. The digital asset has gone from over 90% of the total market share to less than half, and it has not stopped losing market share.
BTC’s overall market dominance is currently below 40% at the time of writing. However, it is important to keep in mind that the digital asset has been able to maintain such great dominance even at a time when altcoins are growing in popularity and attracting more investor attention.
The increasing use of Bitcoin as an inflation hedge is also helping to support the digital asset. As well as giving higher year-on-year returns over the past few years. The cryptocurrency has also proven Schiff wrong in the past, rising to $69,000 when the economist predicted it would go to zero.
BTC is undoubtedly in a bear trend that could continue for a while as evidenced by past bear market cycles. However, if history is any indicator, bitcoin is likely to start another bull rally as the halving rolls around in 2024.
Featured image from Coincu News, chart from TradingView.com
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