Galaxy Digital founder Mike Novogratz offered a bet to Euro Pacific Capital CEO Peter Schiff because of opposing views on the prospects for bitcoin prices. In response to Schiff's bearish forecast, Novogratz said he would transfer $1 million to charity or any other goal of his opponent's choice if bitcoin trades below $35,000 in a year.
Earlier, Novogratz predicted that the decline in bitcoin would end around the level of $38,000, but this weekend the price of the cryptocurrency dropped to $34,000 – the lowest level since July 2021. Commenting on the latest market movement, CEO of Galaxy Digital writes:
"The Russell 2000 index has broken through a major support, now it is a bear market. Sales are growing, don't buy on kickbacks. It will be difficult for cryptocurrencies to start growing until the stock market reaches the bottom. Nevertheless, cryptocurrencies have already experienced a significant sale and are beginning to receive support from buyers. This year people realize that being an investor is hard work."
Schiff has a reputation as an active supporter of gold and an opponent of bitcoin. Against the background of the current market decline, the CEO of Euro Pacific Capital resumed negative forecasts:
"Bitcoin has finally overcome the "neck" line in the "head and shoulders" figure. Holders of long positions in this situation should be frightened by the fact that the pattern foreshadows a movement below $ 30,000. After breaking through this level, bitcoin will complete a huge "double top" figure. From there, a collapse below $10,000 is extremely likely."
The situation was also commented on by the author of the "Black Swan" Nassim Taleb, a former bitcoin supporter who joined the ranks of opponents of the cryptocurrency:
"In the case of an asset supported by contagion without an economic link, such as bitcoin, lowering the price does not make it more "cheap" and attractive. The price reduction makes it less attractive and, paradoxically, more expensive. Why? Because the price is his only characteristic."
Economist Nouriel Roubini said that El Salvador "actually went bankrupt" because of its investments in bitcoin. According to NayibTracker, El Salvador has invested about $85 million in bitcoin and at current prices has more than $20 million of unrealized loss.