Bitcoin hater Peter Schiff scoffs at recent rally, warns of imminent crash

Acclaimed Bitcoin hater Peter Schiff has once again cast doubt on the cryptocurrency’s long-term sustainability. Schiff recently expressed skepticism about the recent Bitcoin rally that saw its market cap previously reach an impressive $31,000.

According to Schiff, the current increase in the BTC price is only a temporary thing, and he believes that the “party” will end soon.

Schiff’s skepticism stems from his belief that cryptocurrency lacks intrinsic value and is merely a speculative asset. As a gold bug, he advocates investing in precious metals such as gold, which he considers to be a more stable and reliable store of value.

He often points out the historical significance and enduring value of gold, contrasting it with what he perceives as the volatility and unpredictability of Bitcoin.

Bitcoin̵[ads1]7;s rise and Peter Schiff’s doubts

Schiff recently took to Twitter to express his doubts about the sustainability of the recent BTC rally. In his tweet, Schiff said, “conventions end when the lowest quality stuff finally participates,” referring to cryptocurrencies as “lowest quality” assets. His comment reflects his longstanding skepticism about Bitcoin and other digital currencies.

The increase in Bitcoin’s value occurred shortly after US Federal Reserve Chairman Jerome Powell testified before Congress about the state of monetary policy.

During his testimony, Powell mentioned that the fight against inflation “has a long way to go” and hinted that rate hikes could still be on the horizon, despite a previously agreed pause earlier this month.

Powell’s comments created a sense of uncertainty in the market, prompting investors to seek alternative investment opportunities, including BTC.

Bets on institutional adoption and ETF approval

Investors have been increasingly optimistic about the prospects for increased institutional adoption and potential approval of a Bitcoin spot ETF (exchange-traded fund) in the near future.

Several major players in the financial industry, such as BlackRock, Bitwise and WisdomTree, have recently submitted applications for Bitcoin ETFs. The anticipation of such a development has contributed to the positive sentiment and upward momentum in the Bitcoin market.

Source: Coingecko

Following the recent surge, Bitcoin has experienced a slight correction, currently standing at $30,745.57 on CoinGecko. Despite the correction, it still maintains a remarkable increase of 17% in the last seven days.

BTC advancing to the $31K territory. Chart:

Likewise, Ether (ETH), the second largest cryptocurrency by market cap, has also seen gains, rising 3% and approaching the $2,000 mark.

While cryptocurrencies continue their volatile journey, traditional stocks met a different fate. At the time of publication, the S&P 500 and Nasdaq Composite Indices were both in the red, experiencing losses of 0.5% and 0.7% respectively.

This contrast further highlights the divergence between the cryptocurrency market and traditional financial markets, with investors seeking different opportunities and reacting to different factors.

Featured image from Reuters/Rick Wilking

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