Famous fund manager and investor Peter Schiff described a carnage indicator for the cryptocurrency market and expects its realization soon.
What is the carnage indicator for Bitcoin?
According to the economist, the performance of crypto-related stocks like Coinbase can hint at digital assets performing in the future as numerous retail and institutional investors receive exposure to the crypto market via crypto-related stocks.
Whenever stocks are tanking, investors expect similar moves on the cryptocurrency market as the distribution of funds on the cryptocurrency market often follows the performance on the stock market. Previously, U.Today highlighted that Bitcoin's correlation with tech stocks remains high.
Yes #gold stocks got clobbered today, with the GDX down 5% on a mere $6 drop in the price of gold. But since Feb. 10th the GDX is up 25%. In contrast, The Valkyrie #Bitcoin Miners ETF is down 35%. $10K invested in gold miners = $12.5K. $10K invested in fool's gold miners = $6.5K!— Peter Schiff (@PeterSchiff) April 21, 2022
In contrast to Bitcoin's performance, Schiff displayed the movement of gold-related stocks that went through a strong correction on April 21 in addition to $6 drops in the price of gold, but traditional assets have shown better performance compared to Bitcoin. For example, Valkyrie Miners ETF was down 35% since February, while gold mine-related investment products are up 25%.
Schiff remains anti-Bitcoin and pro-gold
Peter Schiff is famous for his constant attacks on Bitcoin and support of gold as a better investment tool. Despite the poor performance of gold in the last 10 years, Schiff still believes that Bitcoin is "worthless" in the long term and should not be considered a safe haven asset or an inflation hedge.
Gold, in fact, remains one of the most popular inflation hedges in the world as it shows extremely positive performance against the Consumer Price Index for the last 50 years, with the price of gold showing a 36-fold increase against inflation's 6.8.