- Bitcoin is trading near its March high but remains 15 percent lower when compared to its 2021 value in gold.
- Schiff says a weaker dollar may not boost Bitcoin, instead warning it could worsen conditions for consumers.
- Despite increased volume and interest, the market remains divided over Bitcoin’s trajectory in the current macroeconomic landscape.
Bitcoin has risen past $105,000, nearing its March 2025 peak. Despite the momentum, economist Peter Schiff challenged the optimism surrounding its rally. On Tuesday, Schiff highlighted that Bitcoin, when measured against gold, remains 15% below its highest point from September 2021.
The recent decline of the US dollar, now at its weakest level against the euro since late 2021, has shifted investor attention to alternative assets. Bitcoin and gold have seen renewed interest as hedges against currency depreciation. However, Schiff cautioned that a weaker dollar could hurt consumers more than it benefits cryptocurrencies.
Bitcoin-to-Gold Ratio Underlines Concerns
While Bitcoin has gained in dollar terms, its price relative to gold suggests a different story. Schiff argued that pricing Bitcoin in gold reveals its actual value trend. He maintains that, unlike gold, Bitcoin lacks intrinsic value and functions more like a speculative asset than a reliable store of wealth.
Some analysts say that the duration of the uptrend is called into question by analyzing Bitcoin charts, although they are quite strong. The traders are still waiting to see whether the cryptocurrency can maintain its current momentum and breach the resistance levels. Unless set in a wider discussion concerning the long-term prospects of Bitcoin operating in changing macro conditions, the remarks made by Schiff are only marginal.
Crypto Advocates Stay Optimistic
Despite skepticism, Bitcoin supporters remain bullish. Figures like Michael Saylor and Samson Mow continue to predict substantial growth. Trading volume has also surged, with reports of over $3 billion moved within one hour, signaling active participation and heightened market activity.
