Renowned economist criticizes Bitcoin pumpers for attributing BTCs decline to Mt Gox
Bitcoin (BTC) has seen some short-term gains, yet it continues to face downward pressure due to ongoing capital outflows. Much of this is attributed to the influx of BTC from Mt. Gox repayments.
In a recent post dated July 6th, American economist and crypto skeptic Peter Schiff criticized BTC enthusiasts for blaming the recent price slump on Mt. Gox creditors. Schiff argued that this explanation oversimplifies the issue and distracts from deeper problems within the cryptocurrency market. He pointed out that the sell-off indicates a lack of real institutional interest in Bitcoin.
Schiff contended that if institutional demand were as strong as claimed, buyers would eagerly acquire Mt. Gox’s Bitcoin off-market to mitigate any negative price impacts.
In addition to Mt. Gox repayments, some market observers have linked Bitcoin’s decline to Germany’s decision to sell the asset. However, Schiff dismissed this, suggesting that such government sales wouldn’t affect the market if institutional interest in crypto were genuine.
Schiff’s remarks come amid ongoing discussions about institutional interest in Bitcoin, highlighted by recent moves of major financial institutions entering the cryptocurrency sector, particularly through ETFs.
Schiff, a persistent critic of Bitcoin, has consistently warned about its vulnerabilities, emphasizing its lack of intrinsic value and susceptibility to speculative bubbles and market manipulation.
The Mt. Gox repayment process, long-awaited by creditors, is seen by many in the crypto community as a significant factor influencing recent Bitcoin price movements. Mt. Gox, the Tokyo-based Bitcoin exchange that declared bankruptcy in 2014 after losing 850,000 Bitcoins to hackers, is currently in the process of repaying nearly $9 billion to creditors, having already sold around 50,000 BTC.
Despite current bearish trends, Schiff predicts that the Bitcoin sell-off could intensify, particularly cautioning that all Bitcoin ETF investors will lose money if BTC trades below $38,000.
At the time of writing, Bitcoin aims to maintain its gains above the $57,000 support level, showing a nearly 2.5% increase over the last 24 hours, with its price at $57,083.
