Wall Street tycoon warns Bitcoin of another 'pump and dump' trap

Author: Feng Feng; Source: FX168 Finance

Wall Street tycoon Peter Schiff warned that the current surge in Bitcoin prices looks like “another classic pump and dump.” He noted the huge excitement about the new spot Bitcoin exchange-traded fund (ETF) and expressed his skepticism, saying: "I wonder when the carnage starts."

(Screenshot source: Bitcoin.com)

On Monday (February 12), the price of Bitcoin soared to over US$50,000. While many are optimistic that Bitcoin prices will rise further as the halving approaches, Peter Schiff, CEO and chief global strategist at Euro Pacific Asset Management, remains skeptical. He wrote on the social media /p>

Many people responded to Schiff by reminding him of his past inaccurate predictions about Bitcoin prices. They also highlighted that Schiff has been against advice to buy Bitcoin, pointing out that the price of Bitcoin has been significantly lower in the past and highlighting the opportunities missed by following his advice.

In November 2018, Schiff wrote on Twitter: "Don't make the mistake of assuming that just because current prices are more than 80% below all-time highs, Think buying Bitcoin below $3,800 is a bargain. The price of Bitcoin is likely to drop another 80% from here, and $750 is still expensive!”

In January of this year, after the launch of spot Bitcoin ETFs and the subsequent decline in Bitcoin prices, Schiff declared that all such ETFs were in a bear market and warned that greater losses could occur.

He expected speculators to sell Bitcoin and institutional demand to be minimized, and further predicted that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler Potential “burdensome crypto regulation” under ) will trigger a “Bitcoin carnage.”

Senior trader Peter Brandt responded to Schiff’s “classic pump-and-sell” remarks about Bitcoin on the X platform: “In fact, I believe that One day you're going to be right about some market. My guess is, it won't be Bitcoin."

On Tuesday, Bitcoin hit The highest since December 2021 was $50,383, but Bitcoin fell below $50,000 after U.S. CPI data triggered a surge in the dollar.

The U.S. Department of Labor report on Tuesday showed that the Consumer Price Index (CPI) increased by 3.1% year-on-year in January, an increase higher than the expected 2.9%; CPI increased month-on-month 0.3%, an increase higher than the expected 0.2%; core CPI increased by 3.9% year-on-year, an increase higher than the expected 3.7%; core CPI increased by 0.4% month-on-month, the largest increase in eight months, higher than the expected 0.3%, compared with December The previous value was 0.3% higher.