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In the midst of escalating geopolitical tensions following Israel’s targeted strikes in Iran, the cryptocurrency market led by Bitcoin (BTC) experienced significant declines once again. Bitcoin’s price fell below $60,000 for the second time this week, prompting investors to seek refuge in traditional safe-haven assets like gold, bonds, and the US dollar, thereby indicating a broader flight from risk. Bitcoin critic Peter Schiff took this opportunity to criticize the leading cryptocurrency, arguing that Bitcoin no longer carries the promise of being “Gold 2.0”.
Bitcoin Criticized: Emphasis on Fragility
With the emergence of news about explosions in Iran and Israeli airstrikes in Iraq and Syria, markets became turbulent once again. As geopolitical uncertainty increased, oil prices rose while stock futures fell. Known as a safe haven, gold once again confirmed its appeal amid market fluctuations, with its price increasing by 1.6% to $2,416 per ounce. In contrast, Bitcoin experienced a sharp 4% drop to $61,000, highlighting its vulnerability to fluctuations during geopolitical turmoil.
While gold reached new record levels, silver also made significant gains, outperforming its counterpart. This increase in silver’s value demonstrated to investors that it provides an alternative path for stability in turbulent market conditions.
In light of these developments, Schiff, who is consistently skeptical and critical of Bitcoin, reiterated his doubts about BTC’s resilience compared to the enduring value of gold. Schiff pointed to a 6% drop in Bitcoin amidst ongoing market chaos as a sign of decreasing confidence in the largest cryptocurrency. He particularly highlighted Bitcoin’s current trading position compared to gold, noting a 30% drop from its peak two and a half years ago, coinciding with the entry of investors into new spot Bitcoin ETFs, indicating a return to a prolonged bear market.
Bitwise CEO Raises Expectations for Bitcoin
In response to Schiff’s criticisms, Bitwise CEO Hunter Horsley offered a contrasting forecast, raising expectations. Horsley argued that long-term Bitcoin investors are maintaining their positions despite geopolitical tensions, challenging the notion that they are selling off their BTCs.
Furthermore, Registered Investment Advisors (RIAs) and multi-family offices are quietly considering Bitcoin investments, with an increasing trend among some to integrate the largest cryptocurrency into client accounts and evaluate its role in investment models. The Bitwise CEO predicts that Bitcoin will be gradually but significantly adopted by more companies over time, potentially surprising industry observers with the degree of adoption. Horsley also added that he expects the largest cryptocurrency to reach the $100,000 threshold following its 4th block reward halving.
