Bitcoin has declined to levels not seen since November 2021, trading near $68,000 compared to the $69,000 peak reached in that month. The asset is currently approximately 45% below its $126,000 record and down 32% over the past year.
Schiff's Bear Market Assessment
Economist Peter Schiff used the price decline to declare Bitcoin in a long-term bear market. In a post on social media, Schiff asked investors how they would have reacted five years ago if told Bitcoin would eventually trade below its November 2021 price, concluding that the long-term trend is downward.
Market Decline and Liquidations
Bitcoin experienced significant recent losses, dropping 7% in 24 hours according to market data. Over a seven-day period, the asset fell more than 9%, and declined nearly 11% across two weeks. Over the past month, Bitcoin traded more than 17% lower than previous levels. The broader crypto market also weakened, with major altcoins experiencing steeper declines during the same 24-hour period.
Counterarguments From Supporters
Bitcoin advocates pushed back against Schiff's analysis. Podcaster Stephan Livera noted that Bitcoin had also traded below its 2017 all-time high in November 2022, suggesting that comparing previous market peaks with subsequent lows can be misleading indicators of long-term trends.
Schiff on Gold and MicroStrategy
Schiff defended gold as an alternative asset, noting gains during recent trading. He also criticized MicroStrategy's stock repurchase program, claiming the company must continue buying back shares because customer demand has weakened.
