Notorious Bitcoin hater Peter Schiff has once again questioned the long-term sustainability of the cryptocurrency. Schiff recently expressed skepticism regarding Bitcoin’s recent rally which saw its market capitalization earlier hit an impressive $31,000.
According to Schiff, the current BTC price surge is only a temporary thing, and he believes “the party” will soon be over.
Schiff’s skepticism stems from his belief that cryptocurrency lacks intrinsic value and is merely a speculative asset. As a gold bug, he advocates investing in precious metals like gold, which he sees as a more stable and reliable store of value.
He often emphasizes the historical significance and enduring value of gold, contrasting it with what he perceives as Bitcoin’s volatility and unpredictability.
The Advance of Bitcoin and Peter Schiff’s Doubts
Schiff recently took to Twitter to express his doubts about the sustainability of the recent BTC rally. In his tweet, Schiff said, “rallies end when the lowest quality items finally participate,” referring to cryptocurrencies as the “lowest quality” assets. His comment reflects his long-standing skepticism towards Bitcoin and other digital currencies.
Until recently, the rally in highly speculative assets ruled out #Bitcoins. Now that Bitcoin has finally joined the party, it may be a sign that the party is about to end soon. Usually gatherings end when the lower quality elements finally participate. There is no lower quality than #crypto.
— Peter Schiff (@PeterSchiff) June 23, 2023
Bitcoin’s surge in value occurred shortly after US Federal Reserve Chairman Jerome Powell testified before Congress on the state of monetary policy.
During his testimony, Powell mentioned that the fight against inflation “still has a long way to go” and hinted that rate hikes could still be on the horizon, despite a previously agreed pause earlier in the year. the month.
Powell’s remarks created a sense of uncertainty in the market, prompting investors to look for alternative investment opportunities, including BTC.
Betting on Institutional Adoption and ETF Endorsement
Investors are increasingly optimistic about the prospects for increased institutional adoption and the potential approval of a bitcoin spot ETF (exchange traded fund) in the near future.
Several major players in the financial industry, such as BlackRock, Bitwise, and WisdomTree, have recently submitted applications for Bitcoin ETFs. The anticipation of such developments has contributed to the positive sentiment and bullish momentum in the Bitcoin market.
Following its recent surge, Bitcoin has seen a slight adjustment, currently sitting at $30,745.57 on CoinGecko. However, despite the correction, it still maintains a remarkable 17% increase over the past seven days.
BTC advancing to the $31K territory. Chart: TradingView.com
Along the same lines, Ether (ETH), the second-largest cryptocurrency by market capitalization, also recorded gains, rising 3% and approaching the $2,000 mark.
As cryptocurrencies continue their volatile journey, traditional stocks have met a different fate. At press time, the S&P 500 and Nasdaq Composite Indices were both in the red, registering losses of 0.5% and 0.7% respectively.
This contrast further highlights the divergence between the cryptocurrency market and traditional financial markets, with investors looking for different opportunities and reacting to various factors.
Reuters/Rick Wilking Feature Image