Further Bitcoin Crash Might be Imminent as it Declines 30% Against Gold, Peter Schiff Says

Bitcoin, the largest cryptocurrency by market cap, has recorded a significant dip in price over the past week. According to data from CoinMarketCap, the value of the coin has dropped by 7.55% within the recorded time. As a result, the global crypto market has followed the downtrend with millions liquidated over the last day. At the time of writing, the global crypto market cap has plummeted by 1.22% to $2.25 trillion.

With Bitcoin having a current market cap of $1.96 trillion, the coin has crashed about 30% against Gold. On the 24-hour trading chart, Bitcoin slipped as low as $59,000, flirting with the bearish zone for some hours. With this continuous price decline, concerns have been raised across the market with key figures like Peter Schiff dropping their opinion on social media.

Bitcoin Down Over 30% Priced in Gold

In a recent post on X (formerly Twitter), Peter Schiff, a renowned chief economist, global strategist, and a known Bitcoin critic, pointed out the bearish activity surrounding Bitcoin, the flagship cryptocurrency. According to him, Bitcoin is officially back in the bear market territory after it traded around the $59k zone. At that price, Bitcoin was down about 20% from its all-time high of $73,737 reached on March 14.

Now that #Bitcoin is again trading below $59K, it's back in official bear market territory, down over 20% from its record high. But in #gold terms, the bear market has been far more ferocious, with Bitcoin now down over 30% priced in gold. The bear is still young. Look out below.

— Peter Schiff (@PeterSchiff) June 24, 2024

However, the price of the coin has recovered a little and has breached the $60,000 mark, making it about 17% below its ATH. Schiff continued by stating that in terms of Gold, the “bear market has been far more ferocious,” stressing that Bitcoin is now down 30% compared to Gold. He suggested that the bear market is still in its early stage and that a further decline might be imminent.

Further Dip Might Be Expected

In the same thread, Schiff highlighted a major concern, backing his prediction of a possible nosedive in the price of Bitcoin. He talked about the recent announcement by Mt. Gox as a possible catalyst for a further decline. Recall that the defunct crypto exchange Mt. Gox released a statement on July 24, informing creditors that it will start repayments in July. The company informed those affected that it will disburse repayments in Bitcoin (BTC) and Bitcoin Cash (BCH).

This announcement has raised concern among market participants who fear that the release of such an amount of Bitcoin into the market could drive the price downward. Before the announcement, Bitcoin was trading at $63.8k, however, the price of the coin dropped significantly to $58.9k after the announcement.

The major concern among investors and market participants is that those who receive their reimbursement from Mt. Gox might immediately sell off their BTC, leading to excess Bitcoin in circulation and potentially driving the price down. Peter Schiff noted that the price of the coin may drop a lot more before the scheduled date for refunds.

At the time of writing, Bitcoin is changing hands at $60,867, representing a 2.58% drop in the last 24 hours. Bitcoin has traded between the lows and highs of $59,086.11 and $62,949.99 over the last day.