Benzinga - Gold advocate and Bitcoin (CRYPTO: BTC) critic Peter Schiff on Thursday, ridiculed the miners, questioning the drop in Bitcoin mining stocks, particularly as the leading cryptocurrency witnessed a surge.
What Happened: Schiff on X said, “What’s going on with Bitcoin miners? $WGMI, a Bitcoin miners ETF is down 22% from its high just two days ago. Is this a sign of trouble ahead for #Bitcoin itself and for all of those new #BitcoinETFs?”
What's going on with Bitcoin miners? $WGMI, a Bitcoin miners ETF is down 22% from its high just two days ago. Is this a sign of trouble ahead for #Bitcoin itself and for all of those new #BitcoinETFs?— Peter Schiff (@PeterSchiff) March 1, 2024
On Thursday Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) ended the day 8.39% down.
Schiff referred to Bitcoin as the “ultimate bubble,” suggesting it as a reason for its market presence.
“Typically, when an asset bubble develops, there’s at least some underlying value in an over-priced asset. But with #Bitcoin, there’s no value at all. Effectively it’s an asset bubble without a real asset. The ultimate bubble. That may be why it’s grown so large and lasted so long,” he said.
Typically when an asset bubble develops, there's at least some underlying value in an over-priced asset. But with #Bitcoin, there's no value at all. Effectively it's an asset bubble without a real asset. The ultimate bubble. That may be why it's grown so large and lasted so long.— Peter Schiff (@PeterSchiff) February 29, 2024
Bitcoin mining stocks have dropped sharply, despite Bitcoin’s price reaching $64,000. Mining companies Marathon Digital Holdings (NASDAQ:MARA) and Riot Platforms (NASDAQ:RIOT) saw their share prices decrease on Thursday by 16.5% and 9.8% respectively.
Among the mining firms, CleanSpark (NASDAQ:CLSK) experienced losses, with a 7.52% price drop. TeraWulf (NASDAQ:WULF) also saw its stock value fall by 10.71%.
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Why It Matters: The price of Bitcoin soared, moving from about $51,000 on Feb.21 to a yearly high of $63,700. Despite this surge, the price of Bitcoin has since cooled down to $61,350.
The crypto community is also closely monitoring the upcoming halving event, a scheduled reduction in the rewards that miners receive for verifying transactions. The reward will be cut from 6.25 BTC to 3.125 BTC, which at the current Bitcoin price, decreases the value of the reward from $384,739.38 to $192,061.90
Price Action: At the time of writing, BTC was trading at $61,192, up 0.22% in the last 24 hours, according to Benzinga Pro.
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