Peter Schiff, a vocal critic of Bitcoin, suggests that BTC’s rise to $90k presents an opportunity to mitigate risk, even as increasing leverage and whale withdrawals create uncertainty in market direction.
Summary
- Peter Schiff maintains his long-held bearish outlook, describing the recent surge near $90,000 as a chance for investors to minimize Bitcoin exposure and handle potential losses.
- With rising futures open interest and positive funding rates for BTC and ETH, leverage is building across major exchanges, increasing the risk of liquidations if prices do not continue to rise.
- Two newly created wallets withdrew a significant amount of BTC from Binance, which may indicate a supply squeeze; however, analysts emphasize the importance of examining broader exchange flows and holding patterns over isolated withdrawals.
Peter Schiff remarked that the recent BTC rally offers a selling opportunity for investors, as the cryptocurrency approached $90,000, according to his public statements.
Schiff, known for his skepticism towards Bitcoin, suggested that the current price presents a chance for investors to decrease their exposure. He has frequently criticized BTC, reiterating his viewpoint during the latest price surge by stating that sharp increases can provide holders the opportunity to manage risk. His remarks centered on risk mitigation rather than short-term gains, and he did not advocate for buying at present price levels.
This statement emerged as Bitcoin recovered after a period of lackluster price performance. Market activity saw a considerable decline throughout much of December, with lower trading activity despite Bitcoin’s stability, indicating that the rally lacked robust participation, according to market analysts.
Leverage grew in December, defying the prevailing weak sentiment, per recent market analysis. Traders significantly increased leverage across Bitcoin and Ethereum, with a slight uptick in combined futures open interest. This increase occurred even with a low Fear Index. Bitcoin’s open interest rose along with Ethereum futures as BTC neared recent highs, particularly in the final week, showcasing a modest growth in Bitcoin positions.
Major exchanges such as Binance, Bybit, and OKX reported stable or rising open interest, with Gate.io experiencing the most substantial growth during this timeframe, according to exchange metrics. Positive funding rates indicated that traders were willing to pay to maintain long positions, reflecting confidence in a potential price recovery.
Schiff continues to express concerns about Bitcoin
On-chain data revealed that two newly established wallets withdrew a large volume of Bitcoin from Binance in a short three-hour window. These withdrawals prompted discussions about the intentions of institutional or large investors. While some market participants interpreted these moves as potentially bullish because transferring Bitcoin off exchanges may lessen supply, others cautioned that two wallets alone do not indicate a broader trend and highlighted the importance of total exchange outflows and long-term holding statistics as more dependable indicators.
Analysts pointed out that the combination of increasing leverage and positive funding rates could heighten risk to the downside. Should prices fail to break higher, long positions may be rapidly unwound, leading to a potential influx of Bitcoin back into the market from whale holdings, according to expert views.
Bitcoin continued to oscillate within a narrow range, reflecting a balance between buyers and sellers. The market remained divided between Schiff’s caution, growing leverage, and selective activity from large holders, leaving the way forward uncertain as December trading wound down.
