Gold bug Peter Schiff has predicted that the Bitcoin price will likely continue to crash next month, while precious metals gold and silver extend their year-to-date (YTD) gains. This comes as BTC is now on course to record its worst November in the last seven years.
Bitcoin Crash Likely To Continue In December, Schiff Predicts
In an X post, the renowned economist predicted that the Bitcoin crash is likely to continue into December and possibly extend into next year. This came as he noted that BTC is down year-to-date (YTD) with all the hype and buying from MSTR and other treasury companies this year.
On the other hand, he stated that gold and silver are up 60% and 95% YTD without any hype or corporate buying. Schiff added that this divergence will likely continue next month and into the new year.
Notably, the Bitcoin price erased its YTD gains this month, following its crash from above $100,000. The flagship crypto had recorded a gain of above 20% following its run to an all-time high (ATH) of around $126,000 in early October.
BTC is down over 17% this month, marking its worst November in the last seven years. Notably, this marks a deviation as November is historically the flagship crypto’s best-performing month, with an average gain of 41%.
Amid Schiff’s Bitcoin prediction, it is worth mentioning that BitMEX co-founder Arthur Hayes has predicted that the bottom is likely in for the flagship crypto. He stated that BTC is likely to hold above $80,000 regardless of any further decline.
History Points To A Red December
CoinGlass data shows that Bitcoin’s price is likely to record a red December, based on historical data. BTC usually closes December in the red whenever it closes out November in the red. This happened in 2018, 2019, 2021, and 2022.
However, there are bullish fundamentals that mark a positive for the flagship crypto. This includes the possibility of a third rate cut at the December FOMC meeting. As CoinGape reported, the odds of a 25-basis-point Fed rate cut next month are currently at 85%.
Meanwhile, the Fed is set to end quantitative tightening (QT) on December 1, which could inject more liquidity into the market. Ark Invest’s CEO, Cathie Wood, recently stated that they expect the liquidity squeeze to end in the next month, which could spark a reversal for Bitcoin and the broader crypto market.