Renowned economist Peter Schiff projected on Wednesday a supply explosion and subsequent price collapse for Bitcoin (CRYPTO: BTC) if existing holders decide to exit the market.
Existing Holders To Decide Bitcoin’s Fate?
Schiff took to X to share his views on the supply dynamics of the world’s leading cryptocurrency, stating, “Bitcoin’s supply growth isn’t limited to what’s being mined. What matters most is the supply that existing holders want to sell.”
He further stated that while “most existing Bitcoin” isn’t currently for sale, a sudden decision by holders to exit could result in a supply explosion. Without a corresponding increase in demand, he warned, the price would drop sharply.
See Also: Bitcoin (BTC) Price Predictions: 2025, 2026, 2030
Schiff Stating The Obvious, Critics Retort
Several X users poked fun at Schiff for stating the basic principles of supply and demand. Dominik Auer reminded him that all other assets, including gold and real estate, would have the same fate if supply isn’t matched by demand.
Bitcoin Under Pressure In October
Schiff's comments seemed aimed at those who often point to Bitcoin's 21 million supply cap to build a case for its scarcity and its inflation hedge narratives.
His warning comes in the wake of his previous prediction of a “brutal bear market” for Bitcoin. The gold bug urged Bitcoin holders to sell their holdings for the yellow metal to avoid further losses.
Bitcoin has fallen more than 4% so far in October, a month that has historically delivered average gains of nearly 20%.
Price Action: At the time of writing, BTC was exchanging hands at $2.97, up 3.85% in the last 24 hours, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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