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Bitcoin’s price has rallied this week, surging past $50,000. This continues a strong start to 2024 for the cryptocurrency after ending last year on a high note. However, not everyone is convinced the gains are sustainable.
Peter Schiff called Bitcoin’s latest spike a “pump and dump” scheme, whereby traders hype up an asset to drive the price before selling their positions. Schiff believes the price will crash after traders cash out their profits.
Bitcoin crossed over $50,000 on February 13th, reaching over $51,000 during the day. This marks a new 2023 high after Bitcoin has gained over 40% since the start of January.
The broader crypto market also saw gains, with Ethereum crossing $2,500 and smaller altcoins seeing double-digit percentage rises.
Traders attribute Bitcoin’s surge to a combination of factors: heightened institutional investment inflows into cryptocurrency at the beginning of the year, optimistic expectations for sustained long-term price growth, and a broader bullish momentum in risk assets.
In contrast to the bullish mood in 2024, Schiff is unmoved. Bitcoin has been something that Schiff has been critical of, and he just doesn’t want to invest in the digital currency.
Schiff, commenting on the recent bitcoin price movement, labeled it a “pump and dump” operation triggered by manipulation rather than the underlying factors. He thinks that traders cooperate to create a bull market for Bitcoin, attracting retail speculators so that they can easily make money in the markets.
Once the coordinated effort ends, Schiff predicts Bitcoin’s price will crash rapidly. Views remain mixed on whether Bitcoin’s current rally is sustainable. More bullish analysts think prices can continue to rise as adoption increases. Bears see the asset as overextended and due for a selloff.
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