Investors Dumped Bitcoin, According to Schiff
In the ever-evolving world of cryptocurrencies, a significant shift has occurred. The correlation between Bitcoin and the tech-heavy Nasdaq Composite index has dropped to its lowest level since September 2024, indicating a possible decoupling of these two major market players.
Meanwhile, the price of Bitcoin has taken a downturn, currently standing 6.2% below its record high of $124,128, logged on Aug. 14. Gold, on the other hand, has been making headlines with its impressive performance. The precious metal recently notched a string of new record highs, surging above the $3,600 level.
Peter Schiff, co-founder of Echelon Wealth Partners, has been vocal about his views on these developments. Schiff, who supported a Federal Reserve rate hike in 2015, now believes that the Fed should actually implement another rate hike, as it has been 'too loose.' He also suggests that it is time for Bitcoiners to 'change horses' due to Bitcoin lagging behind both gold and stocks.
Schiff is convinced that the Federal Reserve is about to make a 'major' policy mistake by slashing interest rates into rising inflation. He further claims that both risk-tolerant and risk-averse investors have sold Bitcoin, contributing to its current downtrend.
Recent news has also been buzzing about the Federal Reserve's highly anticipated rate cut, the launch of XRP futures options on CME, and SEC's Peirce denying endorsement of crypto projects. Amidst this, there have been predictions suggesting that Bitcoin risks losing $100,000.
In the midst of these developments, Schiff has been taunting Bitcoiners on X social media network. Interestingly, according to Polymarket bettors, there is a 92% chance of the Fed implementing the first rate cut since December 2024.
As the cryptocurrency market continues to evolve, it remains to be seen how these developments will impact Bitcoin and other digital assets. The author of this article, Arman Shirinyan, will continue to monitor these developments and provide insights for our readers.
