Peter Schiff, a well-known advocate for gold, has raised doubts about analysts’ predictions that the price of Bitcoin could reach $100,000 during the current bull market. Schiff also criticized spot Bitcoin exchange-traded funds (ETFs) and the demand they have generated in the market.
Schiff, who has been a critic of Bitcoin and its real-world applications, questioned why the high demand for Bitcoin is not reflected in the stock prices of companies connected to Bitcoin. He cited the poor performance of key Bitcoin-related equity markets, including Coinbase, MicroStrategy, Galaxy Digital, and other crypto-linked stocks. These stocks have seen significant losses, with Coinbase down 21%, Galaxy Digital down 26%, MicroStrategy down 33%, and several Bitcoin mining stocks down by double digits.
However, Schiff did not specify a timeline for these losses, despite the fact that most Bitcoin and crypto-linked stocks have outperformed traditional market stocks by a large margin since the beginning of 2024. The recent downturn in these stocks is due to the bearish momentum in the crypto market.
It is not surprising that the crypto market is experiencing a bearish momentum, as analysts have explained that Bitcoin historically experiences a dip before the halving event and gains momentum afterwards. The Bitcoin halving is scheduled for later this week.
Schiff’s comments were met with responses from Bitcoin proponents who debunked his selective use of data. One user pointed out that MicroStrategy stocks have increased by 300% year-on-year. Others criticized him for cherry-picking data and compared the performance of Bitcoin to gold to highlight the difference in growth between the two assets.
While the price of gold has reached new all-time highs in the second quarter of 2024, it does not compare to the rise of Bitcoin during the same period. Bitcoin advocates Dan Held and Willy Woo also reminded Schiff that he missed the opportunity to buy Bitcoin in 2013 when it was trading at around $1,000.
In related news, the CEO of Trezor, a cryptocurrency hardware wallet, has warned that Bitcoin ETFs have made Coinbase a target for hackers and governments.