Peter Schiff, a renowned economist and vocal Bitcoin skeptic, has once again ignited the debate surrounding digital currencies by predicting a significant drop in Bitcoin’s value. Schiff’s prediction comes amidst a surge in gold and silver prices, further fueling his skepticism towards the cryptocurrency.
Schiff points to the recent market trends, highlighting that silver broke above $31 while Bitcoin dipped below $58,000, as evidence for his bearish stance. He believes Bitcoin may be heading towards a retest of longer-term support levels around $15,000-$20,000.
In a series of tweets, Schiff dismissed Bitcoin as being a digital equivalent of gold or even silver, emphasizing the stark difference in market capitalization. He pointed out that gold’s total market capitalization reached $17.2 trillion, reflecting a gain of $5.7 trillion in 2024 alone, while Bitcoin’s market capitalization currently sits at $1.1 trillion.
Schiff’s skepticism isn’t new. Earlier this month, he criticized investors for favoring Bitcoin ETFs over gold ETFs, arguing they had “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 SPDR Gold Trust ETF, the largest gold ETF, which has risen by 24% despite significant outflows.
Schiff’s recent pronouncements come at a time when the debate regarding the value and stability of digital currencies is intensifying. His skepticism towards Bitcoin is well-documented, with him previously arguing that the leading cryptocurrency lacks intrinsic value and is doomed to fail. His views are supported by recent market trends, as on-chain analytics provider CryptoQuant has observed a negative correlation between Bitcoin and gold. As gold prices have reached record highs, Bitcoin prices have been trending downward, suggesting a shift in market sentiment towards traditional safe-haven assets like gold.
While Schiff’s views are controversial, they underscore the ongoing discussion about the future of digital currencies and their role in the investment landscape. The upcoming Benzinga’s Future of Digital Assets event on November 19th is expected to delve deeper into the influence of Bitcoin as an institutional asset class.
