Peter Schiff Challenges Bitcoin's Claim to 'Digital Gold' After Recent Market Dip
Economist Peter Schiff criticizes Bitcoin's stability following its recent crash, undermining its reputation as 'digital gold' amidst rising gold prices.
Long-time Bitcoin skeptic Peter Schiff has once again raised concerns about the cryptocurrency’s role as ‘digital gold’ in light of its recent price drop.
This discussion arises as Bitcoin faces significant challenges, notably a sharp decline sparked by heightened geopolitical tensions and new tariffs by the U.S. government’s policies.
Schiff Warns of Deeper Instability
In a Twitter post on October 14, Schiff pointedly rejected the notion that the recent Bitcoin flash crash was merely an opportunity for bargain hunters. He argues that it serves as a clearer indication of Bitcoin’s precarious position. Schiff claims, “The Friday Bitcoin flash crash wasn’t a buying opportunity but a warning,” emphasizing that even strong market signals, such as a tweet from a high-profile politician, may not suffice to revive the cryptocurrency’s value in the future.
He believes that the soaring gold prices highlight the ‘myth’ of Bitcoin’s supposed safe-haven status, indicating that confidence in Bitcoin is failing. “The bottom can drop out of Bitcoin at any time,” he cautioned.
The cryptocurrency underwent a swift decline, reaching a low of $110,201 on October 10, while gold is experiencing an upswing, surpassing the $4100 mark this year.
In further comments, Schiff reiterated his belief that traditional assets like gold and silver continue to appreciate, while digital currencies such as Bitcoin and Ethereum face ongoing declines. He warned crypto investors that they might soon face harsh realities and costly lessons as this trend unfolds.
Current BTC Outlook
Bitcoin’s brief recovery this week has since diminished, with its value now hovering around $111,800. This represents nearly a 10% decline over the past week and a notable 11% drop from its record high of over $126,000 achieved in August.
This downturn follows a significant recent market crash, which resulted in mounting bearish activity and put options reflecting negative sentiment. According to Hendrik Ghys, founder of Thalex Global, market volatility has decreased to about 40%, indicating a reframing as traders adjust their strategies.
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