The Bitcoin critic Peter Schiff made yet another bold prediction about the fate of Bitcoin in light of gold’s recent dip following a peak. In a fresh assault on Bitcoin’s potential, Schiff predicted a collapse “more spectacular” than the crypto asset’s recent rally.
Schiff may have convinced himself that Bitcoin is spiraling into oblivion, but the proponents continue to ridicule him.
Swan Song
Schiff argued that gold’s dip below $2,100 triggered a surge in Bitcoin, pushing its value to around $41,000. However, he cautioned that this upward momentum could mark Bitcoin’s “swan song,” suggesting that it might be a prelude to a significant decline.
Schiff attributed Bitcoin’s recent rally to the speculative fervor surrounding spot Bitcoin ETFs, asserting that this excitement is a bubble set to burst. He anticipates a spectacular collapse in the asset’s value, contrasting it with what he sees as a genuine and enduring rally in gold.
While both gold and Bitcoin can function as stores of value, Schiff’s skepticism arises from the perceived speculative nature of the latter. He frequently voices concerns about Bitcoin’s ability to withstand a genuine financial crisis; in Schiff’s view, gold’s current ascent is grounded in real value rather than speculation, positioning it as a more reliable investment compared to the leading crypto.
Proponents of the crypto industry, however, continue to mock his predictions.
Gold and Bitcoin Soar High
Gold surged to a record peak of $2,100 during the initial trading hours on December 4 but later lost a significant portion of those gains. The upward momentum in gold, which had been in progress since early October, reached its high earlier this month, following dovish statements from the US Federal Reserve.
Federal Reserve Chairman Jerome Powell’s assertion that monetary policy had entered a “restrictive territory” caused a sharp decline in the dollar and Treasury yields. This, in turn, propelled gold to an all-time high as expectations for rate cuts by the US Central Bank in early 2024 grew despite efforts to moderate the prevailing optimism.
In a parallel development, the world’s largest crypto – Bitcoin – zoomed past the $40,000 mark for the first time in 2023 on broad enthusiasm about US interest rate cuts and as traders anticipate the approval of a spot Bitcoin ETF.
Bitcoin briefly touched $42,000 – a level not seen since before Terra’s crash last April – before retracing to $41,600 at press time.
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