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The price of Bitcoin has been facing strong selling pressure for some time and has lost several important price levels. According to a well-known economist, the worst is yet to come and the pressure on Bitcoin could soon increase as important players sell their holdings.
Economist Warns of Major Selling Pressure #
The renowned economist Peter Schiff has expressed his concerns about the price of Bitcoin. In his view, the selling pressure for the cryptocurrency will increase as market dynamics change.
According to Schiff, the Bitcoin market has finally reached the point where large early Bitcoin holders can sell their stocks because enough new buyers have joined. Now that Bitcoin is also tradable on exchanges in the form of investment funds, the currency is accessible to a wide audience.
“But so much Bitcoin moving from strong to weak hands not only increases the available supply, but also means future sell-off shocks will be larger,” Schiff concludes.
Large Bitcoin Holders Selling Their Stocks #
In recent months, large investors have indeed sold a lot of Bitcoin. Crypto analyst Ali Martinez shares on X that last week alone, 20,000 Bitcoin were moved to exchanges, suggesting these investors are about to sell.
A notable sale is that of Robert Kiyosaki, a well-known businessman, author, and Bitcoin proponent. He has sold €2 million worth of Bitcoin, a stock he had held for years.
However, he shares that he plans to eventually invest in Bitcoin again, but now has other plans for his capital. Instead of investing in Bitcoin, he’s investing it in companies that will provide him with passive income.
Bitcoin Price Struggles to Stay Afloat #
Retail and other smaller investors are absorbing part of the selling pressure, but Schiff calls them ‘weak hands’. It’s not enough to keep the price up.
The past week, the price of Bitcoin has fallen by more than 10 percent. At the time of writing, Bitcoin is worth $86,000, with the price just above an important support level.