Peter Schiff Questions Bitcoin’s Market Value Amidst Equity Downturns
Crypto News – Renowned gold advocate Peter Schiff recently stirred controversy by casting doubt on the prevailing optimism surrounding Bitcoin’s price trajectory. With market analysts forecasting a potential surge to $100,000 in the ongoing bullish cycle, Schiff took aim not only at Bitcoin itself but also at the burgeoning demand for spot Bitcoin exchange-traded funds (ETFs).
Schiff, a vocal critic of Bitcoin known for his skepticism regarding its intrinsic value and practical utility, lambasted analysts who anticipate Bitcoin’s ascent to new heights fueled by the rising popularity of spot BTC ETFs. In a recent commentary shared on April 16th, Schiff highlighted the bearish performance of major Bitcoin-related equities, including Coinbase, MicroStrategy, Galaxy Digital, and other crypto-linked stocks. He questioned why the robust demand for Bitcoin fails to translate into corresponding gains for companies associated with the cryptocurrency.
Specifically, Schiff noted declines such as Coinbase’s 21% drop, Galaxy Digital’s 26% decrease, and MicroStrategy’s 33% downturn, alongside similar losses in various Bitcoin mining stocks. However, Schiff refrained from providing a specific timeframe for these losses, even as Bitcoin and crypto-linked stocks have generally outperformed traditional equities since the beginning of 2024. Only in recent weeks have many of these stocks experienced a downturn, coinciding with bearish sentiment prevailing in the crypto market.
Schiff’s critique did not escape the notice of Bitcoin proponents, who promptly challenged his assertions. Some pointed out that MicroStrategy’s stocks have surged by 300% year-on-year, casting doubt on Schiff’s selective use of data. Others accused him of cherry-picking statistics, juxtaposing Bitcoin’s performance with that of gold to underscore the disparity in growth between the two assets.
While gold has indeed reached new all-time highs in the second quarter of 2024, its appreciation pales in comparison to Bitcoin’s meteoric rise during the same period. Notably, Bitcoin advocates Dan Held and Willy Woo seized the opportunity to remind Schiff of his failure to capitalize on Bitcoin’s potential back in 2013, when it traded at around $1,000.
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