Goldbug Peter Schiff Calls For Bitcoin To Close 2019 at A Loss


At the start of 2019, both Bitcoin and gold began to rally alongside one another, fueling the Bitcoin as a safe haven asset narrative that permeated the finance industry during the run-up of the two assets.

Gold has since taken a pause, while Bitcoin has entered a downtrend, wiping out as much as 50% of the asset’s rally this year. Now, a prominent gold investor and crypto critic is calling for Bitcoin to close the year at a loss, much like other crypto assets across the industry have.

Goldbug Peter Schiff Takes Shot at Bitcoin, Calls For Yearly Close at a Loss

The year started off with fears of a global recession climbing due to an ongoing trade war between the United States Trump administration against China. The worry that flooded the markets caused stocks to tumble, and safe-haven assets like gold and others to start to rally.

Related Reading | Bitcoin Could Follow Gold Fractal With 44% Drop to Under $7,000 

The digital counterpart to the safe-haven asset gold, Bitcoin, also began to rise as a result. The crypto asset went on a parabolic rally alongside gold, causing many investors to view the first-ever cryptocurrency not only as a store of value, or payment currency, but also as a safe haven asset much like the precious metal has served throughout history.

Gold is bought by investors as a hedge during economic crisis, during times when stocks and other markets begin to collapse. And while Bitcoin and other cryptocurrencies had just come away from a year-long downtrend that erased as much as 80% or more of the asset’s values, the narrative stuck and investors FOMOed into Bitcoin.

But the rally eventually ended, and Bitcoin has since fallen by as much as 50% to current prices from the peak. Before Bitcoin topped out, outspoken crypto critic and goldbug, Peter Schiff, called the parabolic rally nothing more than a sucker’s rally, and unfortunately, given Bitcoin’s following downtrend, he may have been correct.

Now that Bitcoin has reached lows from 2018’s bear market once again, Peter Schiff is now calling for the crypto asset to close 2019 at a loss, after rising over 350% from the current low of $3,100. His prediction is partly based on the fact that both Ethereum and Ripple set new year-to-date lows recently and expects BTC to follow.

Related Reading | Bitcoin Fixes This: Fake Gold Bars Could Turn Investors Toward Digital Counterpart 

Bitcoin price closed January 1, 2019, at roughly $3,800. The leading cryptocurrency by market cap would need to drop another 44% from current values to reach such a number. And while anything is possible, a reversal and downtrend low may be being put in at this very moment, after a $500 surge occurred following a sweep of local lows.

Featured image from Shutterstock

Source link


Please enter your comment!
Please enter your name here