- Bitcoin’s price fell while gold spiked
- Peter Schiff’s holdings declined due to BTC’s investment wave
Bitcoin [BTC] has fallen again on the charts, with the price dropping from over $70,000 to just over $67,000 at the time of writing. In fact, BTC lost more than 5% of its value in just 24 hours.
On the other hand, gold – one of the more traditional assets in the market – rose to a new ATH due to uncertainty in global financial markets. Where does that leave Bitcoin?
What is behind the rise in gold prices?
The aforementioned disparity in price action led several Bitcoin skeptics to come forward and share their views. Peter Schiff, among others, emphasized this in his recent podcast that some media stories attribute the rise in the gold price to geopolitical tensions, such as those in Ukraine or Israel.
However, he believes that this statement ignores the real reason behind the rising gold price. He said,
“People only buy gold for protection, right? I mean, in a sense they’re right: it’s a hedge, but it’s not a hedge against geopolitical uncertainty, it’s a hedge against inflation.”
Schiff further noted that while the U.S. dollar appears strong, compared to other currencies, it is actually weakening, as evidenced by gold’s rise against all currencies.
We go to X (formerly Twitter), he noted,
“It is a rejection of fiat currency and a harbinger of the end of the US dollar’s role as the world’s reserve currency.”
This is a sign that the reserve status of the US dollar is uncertain, and that its apparent strength is only temporary.
Bitcoin is strong against gold
Despite Bitcoin’s recent price volatility Woodbull Charts highlighted a decline in inflation over the past four years, from 3.72% in 2020 to 1.7% in 2024. This could be implied as a sign that short-term declines in the price of BTC are unlikely to lead to widespread selling of the cryptocurrency.
Source: Woodbull Charts
In line with these observations, Woodbull Charts also recently compared Bitcoin’s performance to gold over a 14.5-year period. As of April 2024, Bitcoin’s investment value was $19.83, while gold struggled at $1.97.
Here it is worth noting that Woodbull Charts also had a point to make for Peter Schiff and his followers:
Bitcoin continues to win hearts
Ergo, despite its erratic fluctuations in value, Bitcoin has proven itself to be a desirable investment option for many. Many institutions like MicroStrategy have even started to include BTC in their portfolios due to its performance in recent years.
Needless to say, sentiment around BTC remains as positive as ever, with one commenter to claim,
“Repeat. They won’t shake me out. 100k, BTC to the moon!”
