Bitcoin (BTC) Price Not Driven by Safe-Haven Buying, Says Peter Schiff

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Wed, 01/29/2020 - 17:41
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    Gold bug Peter Schiff is convinced that this Bitcoin (BTC) price rally can only be explained by speculative buying

Cover image via www.facebook.com
Contents

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. 

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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 KrĂĽger 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.       

Bitcoin and Gold
image by @PeterSchiff

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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. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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