Peter Schiff Says Bitcoin OGs Selling To ”Weak Hands” Is Setting Up Steeper Drops

A wave of selling by long-term Bitcoin holders to so-called ”weak hands” is setting the stage for steeper future declines, Peter Schiff warned.

OG (Original Gangster, or early, long-term BTC holders) sellers now have enough liquidity to cash out, increasing supply and amplifying the risk of deeper selloffs by weak hands with less conviction, he said on X.

“Some argue that after all these years Bitcoin is finally having its IPO moment now that there’s enough liquidity for the OGs to cash out,” said Schiff, who is a long-time Bitcoin critic. ”I agree, but this much Bitcoin moving from strong to weak hands not only increases the float, but also means future selloffs will be bigger.”

Some analysts say long-term Bitcoin whales have started selling their holdings in recent weeks.

Among them is Owen Gunden, one of the earliest long-term Bitcoin holders, who sold his entire stash of 11,000 BTC valued at approximately $1.3 billion in October and November.

“Rich Dad, Poor Dad” author and investor Robert Kiyosaki disclosed on Friday that he recently sold BTC valued at about $2.25 million, though he said he remained bullish on BTC’s outlook. Kiyosaki said he purchased the Bitcoin when it was worth about $6,000 per coin and sold it at about $90,000.

Bitcoin Is The ‘Weakest Link,’ Schiff Says

Schiff’s comments come after Bitcoin plummeted 10% in the past week and 22% in the last month. 

BTC price performance over the past week (Source: CoinMarketCap)

In an earlier X post, Schiff took issue with YouTuber Andrei Jikh, who had argued that Bitcoin led the decline in risk assets because it’s more liquid and easier to trade. 

Schiff said the “real reason” is because “Bitcoin carries the most risk.” 

”It’s the weakest link in the risk-asset chain, so it broke first,” he said.