Stark Warning of a Huge Bitcoin Price Crash by Permabear Peter Schiff

TL;DR

• Economist Peter Schiff anticipates new SEC regulations that may adversely impact Bitcoin’s value.
• Schiff has a history of incorrect BTC predictions.

Bitcoin (BTC) Price to Suffer?

Peter Schiff – a well-known economist and one of Bitcoin’s harshest critics – thinks  that the United States Securities and Exchange Commission (SEC) Chairman – Gary Gensler – was “backed into a corner” on the approval of spot Bitcoin ETFs. 

Recall that last week, the agency  gave the thumbs up on multiple applications, allowing the ETFs start trading on the American market for the first time. 

Schiff believes that Gensler hasn’t said his final word, expecting his future actions to impact the cryptocurrency industry, more specifically Bitcoin (BTC):

“I think he will soon introduce new onerous crypto regulations that will substantially increase the cost of Bitcoin transactions, further undermining its “use” case, resulting in a sharp decline in price.”

Several X (Twitter) users opposed Schiff’s theory, reminding that Gensler has repeatedly  stated  over the years that BTC is the only cryptocurrency with the status of a commodity, meaning that regulatory changes coming from the SEC would be a challenging process. 

The economist claimed that the watchdog’s Chairman might change his mind on the matter. He suggested that the potential rules would relate to anti-money laundering (AML), not securities law. 

“I likely won’t approve of the regulations. So, I am not hoping to be right. I just think I will end up being right,” Schiff concluded.

Previous Anti-Bitcoin Bets

The vocal skeptic of BTC, who once called it “a digital pyramid scheme,” noted the asset’s price rally at the start of last year,  counseling HODLers to use it as an opportunity to sell their positions. Contrary to his expectations, Bitcoin experienced a substantial upswing throughout 2023, closing it at approximately $42,000 (a 130% increase since his advice).

Last December, when BTC was trading at around $41,000, Schiff maintained it was headed for a “swan song” collapse. The primary cryptocurrency defied his forecast again, surging to as high as $49,000 a mere few weeks later.