Peter Schiff softens on Bitcoin: ‘I’ve learned my lesson’

Peter Schiff, a long-time Bitcoin critic, shows signs of changing his stance as he acknowledges the cryptocurrency’s unpredictable price movements. Recently, Bitcoin’s price rose above $110,000 for the first time in two weeks, leading to significant trading activities. With growing short liquidations and shifting funding rates, the market seems to be heating up, prompting even critics like Schiff to reconsider their positions.

In an unexpected turn, Peter Schiff, a long-time critic of Bitcoin, appears to be softening his views on the cryptocurrency. He recently tweeted, “Never say never, especially when it comes to Bitcoin prices. I’ve learned that lesson,” following Bitcoin’s rise past the $110,000 mark. This stirred quite a buzz on social media, especially on X, where discussions about Bitcoin are always lively. Schiff’s puzzlement over Bitcoin’s spike—asking, “What’s up with that?”—highlights the volatility inherent to digital currencies.

Bitcoin’s price crested above $110,000 on Monday, marking its first significant surge in about two weeks, which also pulled other digital assets into a rally. Recently, Bitcoin traded around $109,257, noted a 1.81% increase over the previous 24 hours. After dipping to about $100,377 on June 5, it has made a recovery of nearly 5%. Yet, at this level, Bitcoin remains 2.38% off from its all-time high of $111,814 recorded in May.

Schiff has always been a fervent advocate for gold, often questioning Bitcoin’s long-term viability. Despite his criticisms, the continued resilience of Bitcoin seems to be having an effect on his perspective. Even as a sceptic, he’s acknowledged that the unexpected turns in Bitcoin’s journey are quite astonishing, prompting a reassessment.

On the trading floor, things were quite active—especially with Bitcoin shorts facing significant liquidations as the price surged from $105,000 to $107,000 in a mere four hours on June 9. This move may be attributed to a barrage of short liquidations, signalling traders who bet against Bitcoin experienced losses. Glassnode reported total short liquidations jumped from $105,000 to a staggering $359,000.

The pressure was palpable in Bitcoin futures as shorts worth $5.74 million were liquidated yesterday alone, with the 24-hour simple moving average hitting $768,252. Meanwhile, a notable rise in the long-side premium was observed over the last half day, reaching around $270,480. This indicates that traders are perhaps getting a bit more optimistic, even as underlying conditions hint at potential overheating in the market with rising short liquidations and increased open interest.

In terms of derivatives, there’s an interesting mix. The funding rates, which can be crucial signals of market sentiment, have only ticked up slightly. They currently range between 0.0003% and 0.023% on different exchanges, with an average of around 0.0016%. Traders might keep a close eye on these figures, as a rapid rise could further influence market movements.

It seems we’ve reached an inflection point, with Peter Schiff taking a step back from his usual hard-line against Bitcoin. The crypto space is always changing, and with surprises lurking at every corner, it can be insightful to watch how even staunch critics adapt their views in response to the market’s behaviour.