Bitcoin Rally Linked to Gold’s Price Pullback, Claims Economist
American economist Peter Schiff recently stated that the recent surge in Bitcoin’s price can be attributed to a decline in the price of gold. Schiff believes that Bitcoin’s rally is driven by speculative frenzy surrounding spot Bitcoin ETFs and predicts a significant crash for the cryptocurrency. However, he expresses confidence in gold’s resilience, stating that its rally is genuine unlike Bitcoin’s.
Gold Plummets 6% After Reaching All-Time High
Schiff’s remarks came just as gold reached a new all-time high of over $2,100. However, shortly after his post, gold experienced a substantial pullback, plummeting 6% to as low as $2,020. It closed near $2,030.
Schiff Downplays Bitcoin’s Rise Compared to Gold
In another post, Schiff downplayed Bitcoin trading above $40K and emphasized the significance of gold’s recent price rally. He mentioned that gold is in uncharted territory while Bitcoin still needs to rally more than 60% to make a new high.
Possible Approval of Spot Bitcoin ETF
The Securities and Exchange Commission (SEC) is expected to announce its decision on granting approval for a spot Bitcoin ETF by January 10. If approved, this would mark the launch of the first-ever spot Bitcoin ETF in the United States.
Hot Take: Gold’s Decline Challenges Schiff’s Assertion
Despite Peter Schiff’s confidence in gold’s resilience and skepticism towards Bitcoin, the precious metal faced a significant decline shortly after his comments. This challenges his claim that gold’s rally is more significant than Bitcoin’s rise. It remains to be seen how both assets will perform in the coming days and whether Schiff’s predictions will hold true.
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