Renowned Bitcoin hater Peter Schiff has once again cast doubt on the long-term sustainability of the cryptocurrency. Schiff recently expressed skepticism to him regarding Bitcoin's recent rally that he saw its market cap hit an impressive $31,000 before.
According to Schiff, the current rise in the price of BTC is merely temporary, and he believes that "the party" will soon be over.
Schiff's skepticism stems from his belief that cryptocurrency lacks intrinsic value and is simply a speculative asset. As a gold lover, he advocates investing in precious metals such as gold, which he sees as a more stable and reliable store of value.
He often points to the historical importance and enduring value of gold, contrasting it with what he perceives to be Bitcoin's volatility and unpredictability.
The advance of Bitcoin and the doubts of Peter Schiff
Schiff recently took to Twitter to express doubts about the sustainability of BTC's recent rally. in his tweetAs Schiff stated, โthe rallies end when the lower quality stuff finally gets involved,โ referring to cryptocurrencies as the โlower qualityโ assets. His comment reflects his longstanding skepticism towards Bitcoin and other digital currencies.
Excluding until recently the rally in highly speculative assets #Bitcoin. Now that Bitcoin has finally joined the party, perhaps it's a sign that the party will be over soon. Rallies usually end when the lesser quality material finally participates. There is no worse quality than #crypto.
โPeter Schiff (@PeterSchiff) June 23, 2023
The rise in the value of Bitcoin occurred shortly after US Federal Reserve Chairman Jerome Powell testified before Congress about the state of monetary policy.
During his testimony, Powell mentioned that the fight against inflation "has a long way to go" and hinted that rate hikes may still be on the horizon, despite a previously agreed pause earlier in the month.
Powell's comments created a sense of uncertainty in the market, prompting investors to seek alternative investment opportunities, including BTC.
Betting on institutional adoption and ETF approval
Investors have been increasingly optimistic about the prospects for increased institutional adoption and the possible approval of a Bitcoin spot ETF (exchange traded fund) in the near future.
Several major players in the financial industry, such as BlackRock, Bitwise, and WisdomTree, have recently submitted applications for Bitcoin ETFs. The anticipation of such developments has contributed to the positive sentiment and bullish momentum in the Bitcoin market.
Source: Coingecko
Following its recent rise, Bitcoin has seen a slight adjustment, currently sitting at $30,745.57 on CoinGecko. However, despite the correction, it still maintains a remarkable 17% increase in the last seven days.
BTC advancing to the $31K territory. Chart: TradingView.com
Similarly, Ether (ETH), the second largest cryptocurrency by market cap, has also seen gains, rising 3% and approaching the $2,000 mark.
While cryptocurrencies continue their volatile journey, traditional stocks faced a different fate. At press time, the S&P 500 and Nasdaq Composite Indices both were in the red, experiencing losses of 0.5% and 0.7% respectively.
This contrast further highlights the divergence between the cryptocurrency market and traditional financial markets, with investors looking for different opportunities and reacting to various factors.
Featured image from Reuters/Rick Wilking
