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Bitcoin critic Peter Schiff has made another bold price prediction about the future of Bitcoin following the recent decline in gold. In a new attack on Bitcoin’s potential, Schiff forecasted a “more spectacular” crash than the recent rally of the crypto asset. While Schiff may have convinced himself that Bitcoin is fading away, its supporters continue to mock him.
What Did Peter Schiff Say About Bitcoin?
Schiff noted that Bitcoin experienced a fluctuation after gold dropped below $2,100 and its value rose to $41,000. However, he warned that this upward price movement could be a deception and could mark the beginning of a significant decline.
Schiff attributed Bitcoin’s recent surge to the speculative environment surrounding spot Bitcoin ETFs and claimed that this excitement is a ready-to-burst bubble. He also predicted a major crash for Bitcoin. While opinions exist that both gold and Bitcoin serve as stores of value, Schiff’s skepticism may arise from Bitcoin’s speculative nature.
Schiff, who constantly expresses concerns about whether Bitcoin can withstand a real financial crisis, believes that gold’s current rise is based on real value rather than rumors, making it a more reliable investment compared to leading cryptocurrencies.
Gold and Bitcoin on the Rise
On December 4th, gold reached a record level of $2,100 during the trading day but then lost a significant portion of its gains. The upward momentum in gold since October reached its highest level earlier this month after dovish statements from the Federal Reserve.
Federal Reserve Chairman Jerome Powell claiming that monetary policy is entering a “restrictive zone” led to a sharp drop in the dollar and Treasury yields. This pushed gold to its all-time high, despite efforts to soften prevailing optimism, due to expectations that the Federal Reserve will cut interest rates in early 2024.
In parallel, Bitcoin, the largest cryptocurrency, surpassed the $40,000 level for the first time in 2023 due to expectations of interest rate cuts in the US and investors awaiting approval of a spot Bitcoin ETF. Bitcoin is currently trading above $42,000. At the time of writing, Bitcoin is trading at $41,600.
