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On March 6, the price of Bitcoin soared to $70,000, breaking its prior record set in November 2021 during the pandemic. Similarly, gold reached a new all-time peak at $2,145.37, surpassing its previous high from last December.
Economist Peter Schiff shared his doubts in recent remarks about Bitcoin's latest price surge, particularly in comparison to gold. Despite Bitcoin reaching new heights in dollar terms, he pointed out that when measured against the precious metal, the primary crypto asset has not achieved new highs.
Schiff suggested this discrepancy could weaken the argument for Bitcoin as "digital gold," or replacing the yellow metal as the ultimate store of value. He added that the cryptocurrency still lags behind in the Bitcoin-to-gold ratio, which measures the relative performance of the two assets.
Schiff's remarks come amid a backdrop of Bitcoin's strong performance gains. The cryptocurrency saw an impressive increase of over 155% in 2023, with this upward trend continuing into 2024, where it has already added roughly 67% in value. This surge has coincided with the SEC's approval of spot Bitcoin exchange-traded funds, which is further buoying institutional investor sentiment.
Schiff, known for his critical stance on Bitcoin, also criticized the media's portrayal of the cryptocurrency and questioned the practicality of trading Bitcoin ETFs.
On the other hand, gold has also been on a remarkable run, closing the quarter at an all-time high. The surge comes in line with the bullion’s reputation as a safe haven for investors, especially during volatile market conditions.
Despite Schiff's cautionary view, some market analysts like Larry Tentarelli remain optimistic about Bitcoin's potential. Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report, expects that Bitcoin could surpass $100,000 by the end of the year, possibly driven by the upcoming Bitcoin halving event. However, he also noted that this forecast could be influenced by movements in the 10-year bond yield.
Record highs for Bitcoin and gold represent the first time both the cryptocurrency and the precious metal have hit their peak values at the same time since Bitcoin's inception over a decade ago. However, the factors traditionally believed to influence each asset vary significantly — gold has been considered a safe haven and a store of value for decades, whereas Bitcoin's function beyond speculative investment remains a subject of intense debate.
