Schiff Blasts Bitcoin Rally as Fakeout, Urges Gold Investment Instead
Peter Schiff, a well-known bitcoin critic, has dismissed the recent surge in Bitcoin's price to over $72K as a 'fakeout.' The Treasury's announcement of doubling its bond buybacks to $4B caught markets by surprise, triggering the rally from under $65K. According to Schiff, investors were simply rushing to position liquidity, and this movement is not a genuine breakout.
Schiff urged investors to sell Bitcoin and buy gold instead, as he believes the Treasury's action won't stop rising yields. He predicts that the Fed will need to launch a new QE program to stabilize the market. The Treasury's move was intended to improve liquidity and indirectly lower yields, but Schiff argues it has had the opposite effect.
The economist warned that 'Treasury bond yields have already resumed their rise,' indicating that a larger action might be needed. This could mean a revival of an official quantitative easing strategy, where the Federal Reserve resumes its open market purchases.