The Bitcoin Bubble Bursts: Peter Thiel Sells Out Amid Market Volatility
The cryptocurrency market has been on a wild ride lately, with Bitcoin and other major cryptocurrencies like Ethereum and XRP experiencing a significant downturn after reaching all-time highs. The Bitcoin price, in particular, has struggled to regain its footing, dropping despite speculation that another tech billionaire might follow in Elon Musk’s footsteps and invest in the cryptocurrency.
Bitcoin’s volatile price chart
Now, billionaire Bitcoin buyer Peter Thiel has revealed that he’s sold much of his Bitcoin, citing concerns about the cryptocurrency’s ideological founding vision. In an interview with CNBC, Thiel expressed his doubts about Bitcoin’s ability to live up to its promise as a decentralized, anti-centralized government alternative.
“Where I’m less convinced is this question of the ideological founding vision of bitcoin,” Thiel said. “When people in the FBI tell me that they’d much rather have criminals use bitcoin than $100 bills, it suggests that maybe it’s not quite working the way it was supposed to.”
Peter Thiel, billionaire Bitcoin buyer
Thiel’s comments come as a surprise, given his previous enthusiasm for Bitcoin. In 2021, he spoke at the Bitcoin conference in Miami, saying he felt “underinvested” in the cryptocurrency. His investment firm, Founders Fund, even bought another $100 million worth of Bitcoin when the price was below $30,000.
The 2021 Bitcoin conference in Miami
Despite his reservations, Thiel still holds a small position in Bitcoin, but he’s not convinced that the price will continue to rise dramatically. “I’m not sure it’ll go up that dramatically from here,” he said. “We got the ETF edition, and I don’t know who else buys it from here.”
The rise of Bitcoin ETFs on Wall Street
The news comes as a fleet of U.S. spot Bitcoin exchange-traded funds (ETFs) have exploded onto Wall Street, becoming some of the fastest-growing ETFs in history. While Thiel’s comments may be a setback for Bitcoin enthusiasts, they also highlight the ongoing debate about the cryptocurrency’s true value and purpose.
The future of Bitcoin remains uncertain
