Skip to content
Back to the Guavy Wire
Commodities

Schiff Warns of Bitcoin’s Long-Term Decline as Gold Also Struggles

Instruments
Gold
Share

Peter Schiff, Chief Economist & Global Strategist at Europar, has criticized Bitcoin’s recent performance, noting that prices fell below $69K. On social media, he argued that Bitcoin had returned to levels last seen in November 2021, marking a long-term bear market with a 22% decline over seven weeks. Schiff described the drop as a “slow bleed” without signs of panic selling, urging investors to sell Bitcoin and buy gold instead.

Schiff also pointed out that Bitcoin ETF investors faced an 11% loss based on current prices. However, his preferred alternative, gold, has also struggled. Futures for the precious metal dropped below $3,900 per troy ounce on Friday, impacted by tech sector turmoil and higher-than-expected inflation data. Some analysts warn gold could fall further, with $3.4K identified as the next resistance level.

Luke Grome, FFTT Founder and President, expressed concern over gold’s price action, calling it “scary” and a warning sign for investors. In October, Schiff attributed gold’s decline to liquidity issues, though he viewed it as a buying opportunity. Financial institutions like HSBC have questioned gold’s role as a short-term hedge, citing its exposure to broader market pressures.

More on Commodities