Bitcoin critic Peter Schiff says now is the time to buy gold instead of bitcoin, despite the crypto asset’s recent rally.
Schiff, whose son Spencer is a bitcoin extremist, Told That said, bitcoin’s 27% rally since the beginning of the year is covering gold’s rally which is just getting started.
Peter Schiff Says Gold Will Be a Bearish Hedging, Not Bitcoin
According to Peter Schiff, investors should instead look to gold, which has hit its highest level in nine months at $1,934 and looks set to continue its rally.
Schiff previously said in an Epoch Times interview that a weakening dollar in 2023 would propel gold. They said rising interest rates would increase national debt obligations, leading to borrowers having to service debt instead of saving. Criticizing the Fed’s attempt to reduce inflation through increasing rates, he said that ongoing rate hikes have not modified consumer spending habits. Real estate consultant Nick Gerley recently confirmed that Americans’ spending levels have hit a record low.
Investment managers break out underweight stocks as bitcoin
Even as stock outflows reach a peak not seen since December 2021, many investment managers are allocating less to clients’ portfolios to include fewer equities at levels not seen since 2020. They have invested less at similar levels only twice since 2001.
These stock outflows have historically coincided with market bottoms. With the deepening inverted Treasury yield curve that previously foreshadowed a recession, bitcoin’s recent departure from equity correlation means it may soon live up to its qualms as a safe haven asset.
Bitcoin is up nearly 27% since the start of 2023, outperforming the Dow Jones and S&P 500, which have seen three straight days of decline.
The rally continued mostly unabated as news broke that crypto lender Genesis would be filing for bankruptcy, as the contagion effects of last year’s implications slowly fade from investors’ memories. The Crypto Fear & Greed Index has turned from fear to neutral between January 19th and January 20th, 2023, meaning market fears are slowly fading away.
According to data provider Kaiko, the average trade on notable exchanges increased by $300 in the week ending January 17, 2023.
Drew Forman of Cowen Digital, an institutional trading and custody firm, recently told Bloomberg that institutions are fueling the current rally.
In light of bitcoin’s rally, Michael Saylor, executive chairman of MicroStrategy, recently tweeted that “Bitcoin is stronger.”
MicroStrategy, the largest corporate holder of bitcoin, will build the infrastructure to allow corporations to receive revenue through bitcoin’s Lightning Network.
Venture capital firms are also riding the crest of bitcoin’s rally to invest in technologies seen as the future of crypto in 2023. Most investments are now focused on securing and scaling Ethereum after a major upgrade last year. Others are intent on improving the experience of holding their own crypto.
be for[In]Crypto’s Latest Bitcoin (BTC) Analysis, Click Here.
disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.