Bitcoin fell to the $93,000 range on Monday but briefly recovered to $95,000 in the day’s session. The threat of a major price decline is on the cards due to various microeconomic factors. The cryptocurrency market is in muddy waters as $100 million worth of longs were liquidated early Monday.
While the dip has scared retail investors, institutional firms like MicroStrategy have hinted at accumulating the dips to buy more BTC. Michael Saylor tweeted, “Big week,” hinting that his firm could add more BTC into its balance sheet. This comes after he announced that MicroStrategy “brought Bitcoin every day this week” in November.
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Analyst Says Bitcoin ‘May Keep Shrinking’ Hereon
Gold proponent and economist Peter Schiff has warned that Bitcoin may keep shrinking in value hereon. He explained that BTC will take a longer time to recover this time around in a bear market, making traders miss out on other assets that actually generate more returns. The assets include gold, silver, the US dollar, and other commodities.
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“Bitcoin’s past history of recovering from every bear market will keep a lot of holders from jumping ship for years to come. But this time, instead of recovering, Bitcoin may keep sinking. As losses pile up, holders will also miss the boat on profit opportunities in other assets,” he said.
His doomsday prediction comes when gold prices are hovering at the $4,100 level. The XAU/USD index has held on to its momentum while BTC experienced a fall in the charts. BTC has risen only 2.5% year-to-date, while gold is up 56% during the same timeframe.
“Bitcoin is testing $100K support as gold is testing $4K. My guess is that Bitcoin fails while gold passes. Time to sell your Bitcoin and buy gold,” he wrote. “With gold trading near $4,100, it looks like gold is passing the $4K test. With Bitcoin barely holding $95K, Bitcoin has clearly failed the $100K test,” he summed it up.