Long-standing Bitcoin critic Peter Schiff has once again expressed doubts about the resilience of the digital gold. His latest remarks focus on Bitcoin’s diminishing appeal compared to traditional safe-haven assets like gold and silver.
Bitcoin falls behind silver?
While Bitcoin is showing signs of weakness, dropping over 1% in the evening session, Schiff argues that gold and silver are gaining traction. The commodities market is demonstrating renewed vigor, with gold trading above $3,690 and silver surging past $40 and $43.
This divergence suggests a shift of funds from speculative assets like Bitcoin to historically safer investments. Schiff consistently asserts that while Bitcoin lacks intrinsic value and remains highly vulnerable to market fluctuations, gold and silver offer stability during uncertain times.
The cautious sentiment is mirrored in the current state of the Bitcoin market. After sliding from the $116,000 level earlier this week, Bitcoin is now hovering around $112,900. The decline coincides with efforts to maintain support above the 100-day EMA at $111,800. Traders closely watch the 200-day EMA as a critical structural support level; breaching this zone could open doors towards $106,000.
Potential worsening trend?
A decrease in bullish momentum is indicated by a relative strength index (RSI) nearing neutral levels at 45. Declining trading volume also signals fading enthusiasm for recent gains. Schiff warns that selling pressure may intensify post-U.S. market reopening as risk appetite diminishes further.
If Schiff’s forecast materializes, another downward move for Bitcoin could confirm a broader bearish cycle. While demand for safe-haven assets benefits gold and silver prices, Bitcoin’s high volatility nature leaves it exposed to liquidation amid market turmoil.
Henceforth, the upcoming trading session holds significance as it will determine whether Bitcoin defends its current range or succumbs to a more pronounced correction.