Steve Hanke thinks Bitcoin is likely to fall after a big rally, and here’s why
Renowned Johns Hopkins University economist and crypto critic Steve Hanke believes that Bitcoin will suffer a strong drop — due to the well-established “up and down law.”
Meanwhile, Peter Schiff, another notable Bitcoin hater, outlines possible future conditions under which the US government may impose additional regulations against BTC and all other cryptocurrencies.
“What goes up, must come down”
Leading economist and Bitcoin opponent Hanke tweeted that Bitcoin’s flaws – which will eventually drive its price down – are “a very volatile and speculative nature.”
Hanke believes in the universal law according to which assets and ideas that rise rapidly must eventually decline. According to his tweet, Bitcoin makes it clear that it is no exception to this law as it is highly volatile and speculative in nature.
What flew up must come down, and # bitcoin Certainly not exempt from this law. #BTCThe extreme volatility and speculative nature serve as a reminder of the higher and lower law. pic.twitter.com/ux9pMy3jwL
– Steve Hanke (@steve_hanke) October 5, 2021
This is not the first time Hanke has mentioned these “Bitcoin Features”; Last week, he also tweeted about Bitcoin being highly volatile and speculative, adding that it is “fraud-prone and highly uncertain.”
According to that tweet of his, the intrinsic value of Bitcoin is worth nothing.
Peter Schiff calls an “excuse for more bitcoin regulation” in the future
Another longtime Bitcoin critic, CEO and CFO of SchiffGold Asset Management Fund Peter Schiff, took to Twitter to point out that the US government isn’t outlawing Bitcoin yet doesn’t mean that’s a good sign.
The Gold bug chef believes that many of those buying in Bitcoin now will likely want the government to ban it. So far, he says, the Biden administration favors taxing and regulating BTC.
However, he adds, after the crash of Bitcoin, the US financial authorities will likely use the crash as a pretext for more stringent regulations. Schiff points out the usual reasons for regulating certain assets – to protect investors from them.
Just because the government doesn’t ban # bitcoin This does not mean that you should buy it. In fact, many who do so wish the government had banned it. The @Joe Biden The administration prefers to levy and regulate taxes. Then after the crash he used the losses as an excuse for further regulation.
– Peter Schiff October 6, 2021
Whales raise $3.6 billion in Bitcoin
Meanwhile, on-chain analytics firm Santiment publishes the word that 10 days ago, crypto whales bought another 100 to 10,000 BTC on the chain. 70,000 Bitcoin.
That’s a staggering $3,609,431,000 at the current BTC/USD price of $51,516, according to CoinMarketCap.
Santiment confirmed that this is the largest amount of BTC accumulated in a single day since July 2019 and they believe this could be one of the reasons that pushed Bitcoin above the $51,000 level.