Bitcoin Falls Below $59,000, as Gold Still Struggles
Bitcoin price falls below $59,000 on Tuesday, as gold still struggles to hold the $4,000 price mark. Longtime Bitcoin skeptic and gold permabull Peter Schiff made the case that the cryptocurrency still faces meaningful room to fall, while metals will bounce back.
Speaking with Scott Melker yesterday, longtime Bitcoin skeptic and well-known gold bug Peter Schiff made the case that Bitcoin still faces meaningful room to fall.
He pointed to souring sentiment toward Strategy (MSTR), its preferred shares STRC, and the wider web of institutional money tied to Bitcoin.
In Schiff's view, Bitcoin could slide toward the $20,000 to $30,000 zone, and he suggested that a drop beneath the recent $59,000 floor might clear the way for an even steeper decline.
He also argued that Strategy's pivot, from being one of Bitcoin's largest purchasers to a company that might start offloading the asset to cover reserves, interest, dividend, and share buybacks, strips away a crucial pillar that had actually been propping up the market.
Once the market's dominant buyer turns into its dominant seller, Schiff cautioned, demand could prove too thin to soak up the selling.
Schiff also talked about monetary policy, predicting that Kevin Warsh would follow precisely the path laid down by Powell, Yellen, Bernanke, and Greenspan, opting to let inflation run rather than allow the financial system to unravel. Should the Federal Reserve decline to monetize the national debt, he warned, the fallout could eclipse the 2008 crisis.
Regarding precious metals, despite the recent price struggles, Peter Schiff believes that silver and gold price falls as a healthy consolidation before another major rally. Schiff emphasizes that real interest rates (nominal rates adjusted for inflation) have collapsed. This serves as a powerful catalyst for investors to move into physical gold and silver in the future.
Related assets: Gold