Many market experts attribute Bitcoin's latest price rally to safe-haven buying that came on the heels of the coronavirus outbreak.
However, Euro Pacific Capital CEO Peter Schiff says that there's "nothing safe" about Bitcoin, claiming that the rapid price increase can only be explained by speculation.
For now Bitcoin may be the best performing asset this year, but it has nothing to do with safe haven buying. Those buying #Bitcoin are merely speculating. Some may be speculating that others will buy it as a safe haven, but none actually are. There is nothing safe about Bitcoin!— Peter Schiff (@PeterSchiff) January 29, 2020
Bitcoin significantly outperforms gold
Fundstrat's Tom Lee, who earlier predicted that the BTC price could gain more than 100 percent this year, recently opined that demand for a "safe haven" was fueling the price growth of the top cryptocurrency. As reported by U.Today, economist Alex Krüger mentioned that BTC now has a risk-off component.
Lee also noted that Bitcoin was viewed as a better safe-haven asset than gold, which obviously got under Schiff's skin. In January, gold has so far gained 3.4 percent, which pales in comparison to Bitcoin's 26.5 percent rally.
You are getting played
Schiff isn't getting tired of repeating that Bitcoin's price action is only driven by speculation. This time, he actually has an explanation as to why BTC now tends to react to major global events (whether its the US-Iran conflict or the coronavirus).
The gold bug believes that the BTC price is artificially pumped by manipulators to create the illusion of safe-haven demand. This helps sucker in new buyers to help keep the narrative alive.
Whenever there's actual safe haven demand, Bitcoin pumpers manipulate the price higher to attract buyers, driving the false narrative that #Bitcoin is a safe haven too. Buyers speculate that others will buy Bitcoin as a safe haven, but none do. There's nothing safe about Bitcoin.— Peter Schiff (@PeterSchiff) January 29, 2020