Economist and Bitcoin skeptic Peter Schiff predicts a significant drop in Bitcoin's BTC/USD value as silver and gold prices soar, sparking a fresh debate on the viability of digital currencies.
What Happened: Schiff expressed his views on the recent market trends as silver broke above $31 and Bitcoin fell below $58,000, further fuelling his skepticism towards the digital currency. He suggested that Bitcoin might be headed towards a retest of longer-term support at $15,000–$20,000.
In another tweet, Schiff dismissed Bitcoin as being digital gold or even digital silver.
On Sep.13, Schiff stated that gold's total market capitalization is $17.2 trillion, up $5.7 trillion so far in 2024. Meanwhile, With Bitcoin trading at $58,400, its total market capitalization is $1.1 trillion. Schiff concluded, "Gold’s 2024 market cap gain is already 5x Bitcoin’s total market cap."
Earlier this month, Schiff criticized investors for choosing Bitcoin ETFs over gold ETFs, stating they "bet on the wrong horse". He highlighted the underperformance of Bitcoin ETFs, which have gained less than 17% since their launch in January, compared to the largest gold ETF, SPDR Gold Trust ETF, which has risen 24% despite massive outflows.
Why It Matters: Schiff's comments come as the debate on the value and stability of digital currencies is increasing. His skepticism towards Bitcoin is well-known, with him previously arguing that the leading cryptocurrency lacks intrinsic value and is destined to fail.
His views are supported by recent market trends, with on-chain analytics provider CryptoQuant pointing out a negative correlation between Bitcoin and gold. As gold prices hit record highs, Bitcoin prices have been on a downward trend, suggesting a market leaning towards traditional safe-haven assets like gold.
While Schiff’s views are controversial, they highlight the ongoing debate on the viability of digital currencies and their place in the investment landscape.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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