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Longtime Bitcoin critic Peter Schiff has once again voiced concerns about the digital gold's durability. His most recent comments center on how Bitcoin is currently losing ground to more conventional safe-haven assets like gold and silver.
Bitcoin loses to silver?
While Bitcoin is already exhibiting signs of strain, dropping more than 1% during the evening session, Schiff claims that gold and silver are gaining momentum. The commodities market is displaying renewed strength, as gold is trading above $3,690, and silver is pushing higher, crossing $40 and $43.
This divergence, according to Schiff, indicates that money is moving from speculative assets like Bitcoin to investments that have historically been safer. He has maintained time and time again that while Bitcoin has no inherent value and is therefore still very susceptible to market turbulence, gold and silver provide stability during uncertain times.
This cautious outlook is reflected in the current state of affairs on the Bitcoin chart. After declining from the $116,000 mark earlier this week, Bitcoin is now trading at about $112,900. The drop is taking place as Bitcoin tries to hold onto support above the 100-day EMA, which is currently at $111,800. The 200-day EMA is a level that traders are closely monitoring as a final line of structural support, and a clear break below this zone could pave the way toward $106,000.
Reversal to aggravate?
A decline in bullish momentum is indicated by the relative strength index (RSI), which has moved closer to neutral levels at 45. Indicating that the recent rally is waning, trading volume has also decreased. Schiff advises that after markets reopen in the U.S., selling pressure might increase as risk sentiment continues to decline.
Bitcoin might be in for another leg down if Schiff’s prediction turns out to be accurate, which could validate a larger bearish cycle. Gold and silver profit from demand for safe-haven assets, but Bitcoin could still be viewed as a high-volatility asset that is vulnerable to liquidation in times of market stress.
As a result, the upcoming trading session may prove crucial, with Bitcoin either defending its current range or declining into a more severe correction.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team