Mike Smith
Jan 8
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The fall of Bitcoin by 6% over the past 24 hours has caused a new surge of discussions in the cryptocurrency market. The digital currency is currently trading at $95,476.25. Financial analyst and cryptocurrency critic Peter Schiff has reiterated the potential for serious problems for Bitcoin and related assets, such as shares of MicroStrategy, one of the largest companies investing in BTC.
Schiff argues that the collapse of Bitcoin is inevitable, and that active purchases of cryptocurrency using borrowed funds are only delaying the moment of decline. According to him, MicroStrategy CEO Michael Saylor is deliberately increasing the volume of BTC acquisitions in the hope of maintaining the rate, but this strategy creates an even greater debt burden and increases risks.
The recent collapse of MicroStrategy shares by 9.94%, to $341.42, has increased the skepticism of experts. Schiff noted that such a policy of the company undermines investor confidence, and excessive dependence on one asset subject to high volatility increases the vulnerability of the business model.
Schiff also spoke about the current state of the cryptocurrency market. In his opinion, the speculative excitement around bitcoin diverts capital from traditional instruments, which ultimately undermines financial stability. He calls this phenomenon "irrational allocation of resources" and believes that it negatively affects the long-term prospects of the economy.
The relative strength index (RSI) of Bitcoin is currently at 46.88, which indicates the prevalence of bearish sentiment. Technical analysis confirms the high probability of further price declines. The trend line shows a gradient indicating the potential for new lows, which causes even more concerns among market participants.
The psychological level of $ 100 thousand, which was previously considered important for maintaining the position of bitcoin, is no longer held. The situation highlights the fragility of current market dynamics, which is forcing investors to look for ways to minimize risks.
Meanwhile, cryptocurrency supporters continue to argue that temporary difficulties do not negate the long-term potential of blockchain technology and Bitcoin itself. However, skeptics like Schiff warn of the need for caution, noting that current market changes may be harbingers of more serious events.
