The cryptocurrency market is experiencing a wave of turbulence that has shaken investor confidence across digital assets. Amid the ongoing volatility, economist and gold advocate Peter Schiff has renewed his warning that Bitcoin’s biggest risk lies not in what miners create but in what current holders may decide to sell.
According to Schiff, Bitcoin’s perceived scarcity could disappear overnight if long-term investors begin liquidating their holdings. He explained that most Bitcoin remains off the market, giving the illusion of limited supply.
However, once holders choose to exit, the sudden increase in available coins could overwhelm demand and cause prices to collapse dramatically.
Moreover, Schiff pointed out that without new buying momentum, the imbalance between rising supply and stagnant demand would inevitably drive Bitcoin’s value lower. His statement echoes fundamental market principles and adds to growing concerns about potential large-scale sell-offs within the crypto space.
Institutional Movements Reflect Market Uncertainty
Market data shows that a major Bitcoin wallet recently reduced its holdings from 80,000 BTC to 37,000 BTC, worth roughly $4 billion. At the same time, institutional players remain active, with BlackRock’s iShares Bitcoin Trust (IBIT) recording $660 million in inflows in a single day.
This contrasting activity highlights the divide between retail and institutional investors. Some market watchers believe that large, unidentified sellers—possibly linked to international organizations—are applying downward pressure on Bitcoin.
Once their supply diminishes, a strategic shift toward leveraged long positions could emerge, fueling another price rebound.
Global Gold Meltdown Adds New Market Shock
Global markets were rattled after gold erased approximately $2.1 trillion in value, marking one of its steepest declines in recent years. The downturn caught traders off guard and signaled a sharp change in investor sentiment as digital assets appeared to regain favor.
Veteran trader Peter Brandt observed that the loss equaled more than half of the total cryptocurrency market capitalization, currently estimated at $3.7 trillion. His remarks highlighted how swiftly traditional safe-haven assets can lose ground when enthusiasm for digital currencies rises.
During the same period, Bitcoin (BTC) surged to $108,191 before trimming gains after profit-taking. The rebound temporarily pushed BTC above $104,000, allowing it to outperform gold and strengthen its image as a modern store of value among younger investors.
Schiff’s Skepticism Persists Amid Changing Trends
While Bitcoin’s performance has surprised many, Schiff remains unconvinced of its long-term sustainability. He continues to urge investors to prioritize tangible assets such as gold and silver despite their recent setback.
His warning serves as a reminder of how quickly sentiment can shift in volatile markets, leaving traders torn between traditional security and digital opportunity.