The rise of gold to over $4000 has led to Peter Schiff declaring that the rise of Bitcoin is a "bear market rally" that may be imminent
Peter Schiff, the long-time critic of Bitcoin (BTC) and gold advocate, predicted that the cryptocurrency will collapse.
This comes at a time when the precious metal has reached new record levels, with its price rising to over $4000.
Schiff says that gold may pressure Bitcoin.
The economist said on channel X that Wall Street's enthusiasm for cryptocurrencies has reached unsustainable levels. He noted that with increasing market over-optimism, digital assets may find it difficult to rise.
"It is very likely that Bitcoin and everything related to cryptocurrencies will become more resilient against gold," as stated in the post.
He added that with the metal reaching a high of 4000 USD, Bitcoin is likely to be sold, taking the rest of the cryptocurrencies with it.
This warning comes at a time when the price of Bitcoin has dropped to around 121,600 USD on October 8, marking a decline of over 3% from its all-time high of over 126,000 USD, which it reached at the beginning of the week. Schiff asserts that the current rise of the leading cryptocurrency is merely a "rally in a bear market," emphasizing that it will not escape this classification until it reaches a new record compared to gold. So far this year, this currency, which is considered a safe haven, has outperformed its digital counterpart by about 17%.
A Bitcoin critic previously claimed that the cryptocurrency "does not live up to the hype surrounding it" as digital gold. He explained that the reason for this is its 20% drop against the metal since its peak in August, a decline that, according to him, places it in a bearish market.
The cryptocurrency community rejects the statements.
However, the X cryptocurrency community disagrees with Schiff's recent statements. Technology entrepreneur Brian Schuster challenged Schiff's argument, questioning whether it was "the opposite day." He pointed out that gold, not cryptocurrencies, might outperform, wondering how Wall Street could be so optimistic about gold while the smaller market capitalization of cryptocurrency gives it a wider room for growth.
