The Bitcoin halving is in a couple of weeks and as expected, there are several opinions about what the halving stands for and whether or not it will be bullish for Bitcoin. Recent opinion has come from Euro Pacific Capital Inc. CEO Peter Schiff. According to him, the halving might not have the kind of effect Bitcoin proponents are expecting.
In a recent tweet, Schiff who is a known Bitcoin critic said that many people anticipate a spike in Bitcoin’s price, and have bought into the market. However, he suggests that these investors will be sorely disappointed.
“As [the Bitcoin halving is] universally regarded as being bullish, lots of speculators have already bought. This risks a huge “sell the fact,” as those hoping to cash in, cash out.”
Schiff is referring to a popular trading catchphrase expressed in full as “Buy the rumor, sell the fact”. The phrase refers to a situation where a popular market event – like Bitcoin’s halving – is expected to be bullish for prices but ends up being negative.
Basically, people are buying the rumor when they hodl Bitcoin, hoping to make significant returns from the halving. Here, “sell the fact” refers to the disappointing prediction that Bitcoin will not surge as expected.
In another tweet, Schiff explains exactly what he thinks will happen, in a response to Ripple CTO David Schwartz. According to him, many people will have a lot of Bitcoin after the halving, that they would be unable to offload.
“I think lots of people bought Bitcoin because they think the halving is bullish. They’re wrong. But once the halving occurs, there will be no buyers left. Just sellers looking to take profits. Anyone who wants to buy will have already done so.”
The Bitcoin halving is easily crypto’s most anticipated event. Apart from the advantages it brings to tackle Bitcoin’s inflation, the drop in supply points to a spike in prices. Historically, Bitcoin has always surged after previous halvings and most people think this time will be no different.