- Silver and gold prices surge amid market volatility, reflecting renewed investor interest.
- Schiff critiques Bitcoin ETFs, highlighting doubts about Bitcoin’s fundamental value.
The largest cryptocurrency, Bitcoin [BTC], currently trading at $66,000, once soared beyond $70,000, making history by surpassing its previous all-time high. This bullish rally propelled Bitcoin to surpass the market cap of silver, ranking it as the eighth most valuable asset globally in March.
However, in the latest market developments, Silver experienced a notable surge of 4% on the 3rd of April, indicating a positive movement in its value. Despite this increase, Silver was still far away from reaching its previous record high of $46.47. In contrast, Bitcoin the largest cryptocurrency faced a significant decline of 6% as soon as the clock struck midnight.
Remarking on the same, Peter Schiff, a Bitcoin critic, noted,
“Silver is the new Bitcoin. It’s Bitcoin 2.0.”
Renewed interest in gold & silver
Along with Silver, Gold also witnessed a 1% increase on the 3rd of April currently trading at $2,274 per ounce. This surge underscored renewed investor interest in traditional assets, particularly precious metals, amid market volatility.
While Bitcoin maximalists had considered Bitcoin spot exchange-traded funds (ETFs) as a catalyst to Bitcoin’s price rise, Schiff raised concerns regarding the growing popularity of Bitcoin ETFs, suggesting that their increasing acceptance could unintentionally benefit central banks and large governments.
Additionally, Schiff warned that Bitcoin ETFs could shift investor attention from gold, a traditional safe-haven asset. He further added,
“It’s impossible to overlook Bitcoin’s value proposition, as it has no value.”
This highlights his emphasis on the complexity of how digital assets impact traditional markets.
Bitcoin v/s precious metals
Schiff’s ongoing doubt about digital assets and his belief that Bitcoin lacks fundamental value was further highlighted on the 2nd of April, when Bitcoin dropped $3,000 to $66,000 due to improved US manufacturing, impacting its risk-on-asset status.
In response to Bitcoin’s decline, Peter Schiff criticized the cryptocurrency, highlighting its rapid drop compared to gold’s relatively stable performance.
Hence, this debate carries significant implications for investors, central banks, and the broader stability of the global financial system.
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