- Bitcoin tumbles, triggering concerns that there will be more downsides.
- Gold shows strength, hitting a new all-time high.
- Peter Schiff delights in the role reversal.
This week saw cryptocurrency markets rattled as Bitcoin plunged since Monday, finding support at the $65,200 level. This sudden downturn prompted over $200 billion in outflows across the entire crypto market, igniting concerns for further downside risk ahead.
Amid the mounting sell-off concerns, prominent Bitcoin critic Peter Schiff wasted no time in seizing the moment, relishing in BTC’s downturn while noting gold’s resilience under the same macro circumstances.
Gold Shows Strength
With crypto markets floundering, Schiff stated that the severity of Bitcoin’s drop in such a short period would be equivalent to the unlikely event of gold losing $100 in 10 minutes. Schiff mentioned that gold was “actually up a couple of bucks” during this time, inferring that Bitcoin’s volatility remains a glaring vulnerability compared to gold’s steadier trajectory.
On Monday, gold hit a fresh all-time high of $2,260 per ounce as escalating geopolitical tensions and expectations of a Fed rate cut stoked demand for the precious metal. Analysts attributed the rise to risk-on appetite waning, leading to demand for tried and trusted precious metals.
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The recent surge represents a remarkable recovery from gold’s local bottom of $1,810 on October 6, 2023. Since then, gold has been trending higher, including a 14% blistering rally over the two weeks beginning February 15, culminating in slingshotting gold to new highs.
With Schiff reveling in gold’s overperformance, Bitcoin maxi Willy Woo felt compelled to interject, pointing to Bitcoin’s impressive long-term performance as a counter.
Bitcoin Remains Better Long-Term Asset
In an attempt to bring Schiff back to reality, Woo posted a chart showing that $1 invested in Bitcoin in October 2009 is now worth over $91,200. In contrast, that same $1 invested in gold over the same period would amount to just $2 today.
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Although crypto markets are currently uncertain, Woo played down the significance of the Bitcoin sell-off, attributing the event to a passing “liquidity flush” while reminding his followers that BTC investing is a long-term play.
On the Flipside
- Short-term movements have seen Bitcoin lose more than 8% in the past, only to bounce back.
- Some technical analysts suggest there is more upside for gold.
- Neutral long-term investors would cite the importance of a diversified portfolio.
Why This Matters
Beyond the short-term volatility, Schiff’s remarks spotlighting Bitcoin’s plummet and gold’s ascent tap into much deeper points on what qualifies as a bona fide safe haven asset. As technological innovations collide with long-standing conventions, this latest episode magnifies the clash between upstart digital currencies and historically proven precious metals.
Read more on Peter Schiff’s apparent love-hate relationship with Bitcoin here:
Bitcoin Hater Schiff Peddles Ordinals NFTs as Market Moons
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