On March 6, Bitcoin soared to an unprecedented $70,000, shattering its previous record set during the pandemic in November 2021. Similarly, gold reached a historic peak at $2,145.37, surpassing its previous high from last December.
Economist Peter Schiff expressed skepticism regarding Bitcoin‘s latest price surge, particularly in comparison to gold. Despite Bitcoin’s milestone in dollar terms, Schiff noted that when measured against gold, the cryptocurrency has not attained new highs. This observation challenges the notion of Bitcoin as “digital gold” or a replacement for the traditional store of value. Schiff emphasized the lagging performance of Bitcoin in the Bitcoin-to-gold ratio, which evaluates the relative performance of the two assets.
Schiff’s remarks come amidst Bitcoin’s robust performance. The cryptocurrency witnessed a remarkable increase of over 155% in 2023, with its upward trajectory continuing into 2024, where it has already appreciated roughly 67%. This surge coincided with the SEC‘s approval of spot Bitcoin exchange-traded funds, bolstering institutional investor confidence.
Known for his critical stance on Bitcoin, Schiff also scrutinized the media’s portrayal of the cryptocurrency and questioned the practicality of trading Bitcoin ETFs.
Conversely, gold has experienced a notable uptrend, culminating in an all-time high by the end of the quarter. This surge aligns with gold’s reputation as a safe haven asset, particularly during times of market volatility.
Despite Schiff’s cautious outlook, some market analysts like Larry Tentarelli remain optimistic about Bitcoin’s potential. Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report, anticipates Bitcoin surpassing $100,000 by year-end, potentially driven by the forthcoming Bitcoin halving event. However, he acknowledged that this forecast could be influenced by movements in the 10-year bond yield.
The simultaneous record highs for Bitcoin and gold mark a significant milestone, reflecting the first instance since Bitcoin’s inception over a decade ago. However, the factors influencing each asset differ considerably—gold’s status as a safe haven and store of value contrasts with Bitcoin’s ongoing debate regarding its utility beyond speculative investment.
