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Schiff Criticizes Spot Bitcoin ETFs, Highlights Gold’s Superior Performance

Last Updated June 26, 2024 1:45 PM
Teuta Franjkovic
Last Updated June 26, 2024 1:45 PM

Key Takeaways

  • Peter Schiff warns that Bitcoin has entered a bear market and predicts further declines.
  • Schiff criticizes Bitcoin ETFs, highlighting their underperformance compared to gold and suggesting investor regret.
  • His analysis emphasizes the ongoing debate between Bitcoin and gold as stores of value.

Economist and proponent of gold, Peter Schiff, recently commented  on the downturn in Bitcoin’s price, stating that the cryptocurrency has re-entered “official bear market territory.”

Schiff forecasts further declines in Bitcoin’s value and claims people who sold gold ETFs to buy Bitcoin ETFs “will be sorry’.

Schiff Warns of Deeper Bitcoin Bear Market as Mt. Gox Payouts Loom

Schiff, known for his critical views on Bitcoin, recently used the social media platform X to highlight BTC’s recent price drop. On Monday, Schiff commented  on the cryptocurrency’s performance as its price briefly dipped below $59K, stating:

“It’s back in official bear market territory, down over 20% from its record high.”

However, he warned that when it comes to gold, the bear market has been far more ferocious, with Bitcoin now down over 30% of the price of gold.

The gold advocate also warned about the potential market impact when Mt. Gox creditors start receiving their Bitcoin. Following the announcement on Monday that distributions would begin in July, Schiff suggested  that the impending return of Mt. Gox Bitcoin could lead to further declines in Bitcoin prices before these assets even begin to re-enter the market.

Predicting Investor Regret and Bitcoin’s Decline

In another post on X, Schiff discussed  the performance of spot Bitcoin exchange-traded funds (ETFs). He pointed out that despite purchases by 11 spot Bitcoin ETFs since March 14th, Bitcoin’s value has decreased by 14%.

Over the same period, gold increased by 10%. Schiff observed that many investors who bought Bitcoin ETFs had sold their gold ETFs to finance these purchases, resulting in a net loss of 24% for these buyers. He questioned how long it would take for them to realize their financial misstep.

Schiff has a history of making strong statements about Bitcoin’s trajectory. In May, he cautioned that the launch of spot Ethereum ETFs might lead investors to move their funds from Bitcoin ETFs to Ether, potentially reducing Bitcoin’s market presence. In April, he was even more direct, claiming that the Bitcoin craze had ended and describing BTC as a “gigantic bubble.”

Schiff Analyzes Bitcoin Bubble and Gold’s Stability Amidst Shifting Financial Landscape

Despite his critical view of Bitcoin’s utility and stability, especially when compared to gold, Schiff’s points of view recognize the intricate dynamics among digital currencies, traditional gold investments, and broader economic indicators.

His forecasts for 2024 reveal a cautious outlook on Bitcoin’s future, suggesting that its recent price increase might be a bubble ready to burst. This perspective contrasts with gold’s reputation as a more stable store of value.

Schiff’s insights provide a nuanced perspective on the current economic landscape, emphasizing the ongoing debate between digital and traditional stores of value.

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