Prominent economist and vocal crypto skeptic Peter Schiff has once again stirred the pot with his latest prognosis on Bitcoin (BTC). Schiff, known for his critical stance on digital currencies, has raised eyebrows with his latest post, where he warns of impending regulatory changes that could trouble Bitcoin’s transaction costs and future price trajectory.
Regulatory Changes On The Horizon
Schiff’s warnings are anchored in his belief that the US Securities and Exchange Commission (SEC), under the leadership of Gary Gensler, is poised to introduce new, more stringent regulations for cryptocurrencies.
According to Schiff, these regulations will likely significantly increase the operational costs of Bitcoin transactions. He argues that this hike in transaction costs will erode Bitcoin’s practicality as a digital currency, potentially leading to a sharp decrease in its market value.
Since @GaryGensler was backed into a corner on spot #BitcoinETFs approval, I think he will soon introduce new onerous #crypto regulations that will substantially increase the cost of #Bitcoin transactions, further undermining its “use” case, resulting in a sharp decline in price.
— Peter Schiff (@PeterSchiff) January 17, 2024
Schiff interprets Gensler’s recent actions, especially regarding approving spot Bitcoin exchange-traded funds (ETFs), as a precursor to these anticipated regulatory measures.
Despite the looming threat of increased regulation, some industry observers have pointed to Gensler’s previous classification of Bitcoin as a commodity. This categorization, they argue, might present challenges to the SEC’s scope of regulation.
However, Schiff counters this view by suggesting that the focus of any impending regulatory changes could be more aligned with anti-money laundering efforts rather than strictly within the ambit of securities law.
He thinks most are securities. But he may even change his mind on Bitcoin. But my thought is that new regulations will relate to AML, not securities law.
— Peter Schiff (@PeterSchiff) January 17, 2024
Technical Analysis Adds To Bearish Sentiment On Bitcoin
Supporting Schiff’s bearish outlook, market analyst Bitcoinhyper has recently identified a bearish pattern on Bitcoin’s chart. According to the analyst, a double-top pattern on the stochastic oscillator, a well-regarded momentum indicator, has emerged, signifying potential bearish movement ahead.
This technical observation…
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