Bitcoin (BTC) climbed above $64,000, but Peter Schiff called the rebound a selling opportunity and warned that $65,000 could cap further gains.
Key Points:
- Schiff said Bitcoin holders could use the rally above $64,000 to sell before the price tests resistance near $65,000.
- Goldman Sachs sees a September Federal Reserve rate hike as very unlikely, while traders price the probability at 30.6%.
- Schiff has criticized Bitcoin since 2011, including predictions of much deeper price declines.
Bitcoin Sell Call
Bitcoin had moved above $64,000 on Monday, prompting Schiff, an economist at Euro Pacific Capital, to question what was supporting the move. He argued that holders faced limited upside near $65,000 and much greater downside if the rally failed.
Schiff wrote on X: “I’m not sure why Bitcoin didn’t sell off today, but the rally gives HODLers another opportunity to sell. Any ideas what’s propping it up? Remember, $65K is resistance. There isn’t much upside above that level, but plenty of downside below.”
He also noted that gold had moved above $4,430 and silver above $66.25. Bitcoin remained above $64,000 when BeInCrypto published its report.
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Schiff Rate Context
The market backdrop offered one possible explanation for the rally, as Jan Hatzius, chief economist at Goldman Sachs, said a September Fed rate increase had become “very unlikely.” His Sunday note cited softer retail sales, weaker employment data and cooling inflation.
Traders put the chance of a September hike at 30.6%, according to CME FedWatch data, down sharply from the previous week. Lower expectations for higher borrowing costs can support Bitcoin and other risk assets, while the move also coincided with a broader crypto market rebound.
Schiff’s bearish view predates the current rally by more than a decade. He has publicly called Bitcoin dead or doomed more than 20 times since 2011, when it traded near $17, and earlier this month again favored gold after a bond market selloff.
He has also argued that Bitcoin could fall below $20,000 after losing $50,000, a forecast that has not materialized. Those earlier calls provide the longer record behind his latest warning near $65,000 resistance.
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