 ▲ Bitcoin (BTC) |
As the cryptocurrency market is being rattled by extreme volatility, prominent Bitcoin (BTC) skeptic Peter Schiff issued a stark warning, cautioning of a miserable end for those who invest using excessive debt.
According to a report by financial news outlet MarketWatch on February 8 (local time), Peter Schiff, CEO of Euro Pacific Asset Management, predicted a sharp collapse in Bitcoin prices and delivered scathing remarks, saying he feels pity for investors relying on high leverage. Schiff emphasized that the current Bitcoin rally is nothing more than a massive bubble detached from intrinsic value, warning that prices could soon plunge and trigger bloodshed in the market.
Schiff took direct aim at companies that have drawn attention by aggressively accumulating Bitcoin using debt, such as Strategy (MSTR). He warned, “Once Bitcoin prices start to turn downward, all leverage-based investment models will collapse like a house of cards,” adding that the financial pain awaiting debt-fueled Bitcoin investors would be beyond imagination. In Schiff’s view, Bitcoin is not an investment asset but a massive debt trap that leads investors to ruin.
Despite the cryptocurrency market’s recent record-breaking rallies and its growing reputation as “digital gold,” Schiff remains steadfast in his belief that physical gold is the true store of value. He argued that in a real economic crisis, Bitcoin would fail to act as a safe haven and instead become a risk asset that is among the first to be sold to secure liquidity. Schiff advised investors to wake up from their illusions as soon as possible and shift their focus to tangible assets with real intrinsic value.
Market analysts say Schiff’s comments may be overly pessimistic, but they also echo concerns about excessive open interest and leverage ratios in the derivatives market. In reality, whenever Bitcoin prices slip below key support levels, waves of large-scale liquidations have repeatedly poured out, amplifying declines. The leverage backlash warned of by Schiff is being cited as a chronic vulnerability that must be resolved if the crypto market is to mature into the mainstream financial system.
Ultimately, the Bitcoin market stands at a critical crossroads: whether it will undergo a painful correction to deflate the bubble as Schiff warned, or find momentum for a rebound through new demand. Rather than reacting emotionally to short-term price movements, investors are urged to reassess the level of debt within their portfolios and review risk management strategies to prepare for unexpected downturns. Schiff’s remarks serve as a cold wake-up call to overheated market sentiment, urging investors to take a sober view of reality.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on it. The content should be interpreted solely for informational purposes.*