Mike Novogratz, CEO of Galaxy Digital, has challenged Peter Schiff, CEO of Euro Pacific Capital, to put his money where his uber-bearish mouth is.
Novogratz has made a $1 million bet to the most prominent Bitcoin doomsday prophet on the latter’s oft-repeated forecast that the cryptocurrency market would collapse and burn.
The cryptocurrency tycoon is wagering that Bitcoin will trade beyond the $35,000 mark in a year’s time. If he is incorrect, he will make a $1 million donation to a charity of his choosing. Schiff has not yet responded to the daring proposition.
As reported by U.Today, Novogratz projected that Bitcoin’s price would find a bottom at the $38,000 support level, but warned investors that the market would stay under pressure as bond yields continued to rise.
The market-leading cryptocurrency fell below $34,000, its lowest level since late July, as a result of a persistent sell-off. Novogratz projected in February that Bitcoin will break the $100,000 level in 2021, but the top cryptocurrency peaked at $69,000 in early November before taking a negative swing.
Out-of-control inflation spurred the Federal Reserve of the United States to take a hawkish position, which is regarded to be the primary reason bears are now in charge.
Schiff has been tweeting non-stop on Bitcoin and the larger cryptocurrency market in recent weeks, feeling justified. He is hardly alone among permabears in rejoicing over the Bitcoin fall.
Nassim Taleb, author of “Black Swan,” recently tweeted that a dropping price actually increases the cost and desirability of Bitcoin.
A declining price does not make a contagion-driven asset with no economic basis, such as #BTC, “cheaper” or more desirable. It becomes less appealing and, ironically, more costly as the price decreases.
Nouriel Roubini, an economist at New York University, recently tweeted that El Salvador is now “essentially insolvent” as a result of his Bitcoin wager.
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