Peter Schiff, a notable economist and gold advocate, has warned about dips in the value of Bitcoin ($BTC) ahead of Mt. Gox’s plans to roll out settlements. Mt. Gox will begin these settlements with the 2014 hack victims in July 2024. The now-defunct Bitcoin exchange platform repeatedly delayed the settlement, resulting in the victims receiving their stolen tokens back. The tokens, acquired in 2013, have significantly increased in value.
Simply put, victims who receive their stolen tokens will sit on a large sum of profit. Speculation suggests that most traders would seize the opportunity to sell a portion of their BTC holdings. It will have a ripple effect, as the market will face selling pressure.
Peter has predicted that the value may plunge to $59,000, further declaring that the flagship crypto is officially in the bearish zone. Needless to say, how much of the holdings are sold remains unknown at the moment. Whales have already begun accumulating the dip. On June 24, 2024, they last recorded an inflow of 7,130 tokens in a single day. At that time, the pack’s value stood at $436 million.
Many believe that wallets accumulate no less than 0.1% of the supply, indicating a vote of confidence. Whales are optimistic about the token’s future bull run and, as a result, are betting heavily on it.
Near-term predictions support their assumption, estimating a jump of 34.41% in the next 30 days. BTC could hover around $82,847 by the end of the said time frame amid the volatility of 3.68%. Bitcoin must achieve the target of $71,570 in the next 5 days. It is certainly impossible, given the selling pressure that is mounting on top of Mt. Gox settlements.
Peter has highlighted that many traders who invested in the Spot Bitcoin ETF did so by selling the Gold ETF. Bitcoin has, since March 14 this year, fallen by almost 14%, while Gold has risen by 10%. Therefore, those traders have effectively lost 24%, and it’s unclear how long it will take for them to realize their mistakes. Peter is backing Gold since it is a proven investment option. Its value is bound to increase with time, unlike Bitcoin, which is always surrounded by volatility. Schiff has made bold predictions about Bitcoin. The one that stands out is his declaration for BTC, calling the token a gigantic bubble.
Mt. Gox may not be the sole cause of selling pressure. Numerous traders are contemplating their exit from the market due to their unwillingness to assume additional risks or the absence of an imminent upswing. The risk appetite of investors from around the globe, who are primarily concerned about the resurgence of inflation, also influences inflows.