Bitcoin Tanked, Silver is Now Gold 2.0: Peter Schiff

Amidst escalating geopolitical tensions and Israel’s increased attacks on Iran, Bitcoin and the broader cryptocurrency market faced downward pressure, with BTC slipping below $60,000 for the second time in the week. 

This decline triggered a risk-off sentiment among investors, prompting a movement towards traditional safe-haven assets like gold, bonds, and USD. Notably, Bitcoin critic Peter Schiff seized this opportunity to criticize BTC, arguing that it no longer deserves the title of “Gold 2.0.”

“Not only is gold trading at a new record high, but silver is outperforming, up 1.75%. If you want gold 2.0, just buy silver. The Bitcoin fad is over,” Schiff said in a post on social media platform X.

Bitcoin vs. Silver

Following reports of explosions in Central Iran and Israeli airstrikes in Iraq and Syria, financial markets witnessed significant turbulence. Stock futures plummeted, while oil prices surged in response to the escalating tensions. 

Gold’s price immediately rallied by 1.6%, reaching $2,416, reaffirming its status as a safe haven asset. In contrast, Bitcoin faced a sharp decline of 4%, dropping to $61,000, highlighting its susceptibility to volatility during periods of geopolitical uncertainty.

Silver also saw substantial gains, climbing by 1.75%, outpacing gold’s performance and presenting an alternative option for investors seeking stability.

Schiff Capitalizes on the Bitcoin Price Slump

Bitcoin skeptic Peter Schiff, who debuted a non-fungible token collection not too long ago, capitalized on Bitcoin’s decline, emphasizing the enduring value of gold compared to the perceived volatility of Bitcoin. 

He pointed out Bitcoin’s 6% decrease amidst market turmoil and noted that it is currently trading below 26 ounces of gold, marking a 30% decrease from its peak reached 2.5 years ago. 

Schiff predicts that Bitcoin’s extended bear market may gain fresh traction, especially with the entry of new BTC ETF investors, who might soon opt to exit their positions.

Bitwise CEO is Bullish

Despite Schiff’s critique, Bitwise CEO Hunter Horsley expresses skepticism about the notion that long-term bitcoin investors are selling due to geopolitical tensions. He highlights interactions with long-only investment professionals, indicating no significant redemptions or concerns.

Horsley notes a trend where Registered Investment Advisors (RIAs) and multi-family offices are quietly considering investing in Bitcoin, incorporating it into client accounts, and evaluating its potential role in investment models. He predicts that as time progresses, more firms will openly embrace Bitcoin, surprising many observers with their level of adoption.