While Bitcoin (BTC) faced a rejection at $64,000, gold has surged to a new all-time high of $2,619.36. This surge has fueled by growing concerns over global economic slowdowns, geopolitical tensions, and the U.S. Federal Reserve’s recent rate cuts. This rally has led to renewed criticism of Bitcoin, particularly from gold advocate and outspoken crypto skeptic Peter Schiff.
Peter Schiff Reignites Gold Vs. Bitcoin Debate
Schiff who took to X (formerly Twitter) to taunt BTC HODLers, as gold outperformed the leading crypto. “Another day, another record high for the price of #gold, which is now trading above $2,614,” Schiff wrote.
He continued by pointing out that Bitcoin has failed to achieve a new high since March and hasn’t made a new high against gold since November 2021. “How long does this trend have to last before #HODLers admit defeat?” Schiff questioned.
Another day, another record high for the price of #gold, which is now trading above $2,614. In contrast, #Bitcoin hasn’t made a new high since March, and against gold, it hasn’t made a new high since Nov. 2021. How long does this trend have to last before #HODLers admit defeat?
— Peter Schiff (@PeterSchiff) September 20, 2024
The statement reignited the long-standing debate between Bitcoin and gold supporters. The latest rally in gold comes on the back of the Federal Reserve’s decision to implement an oversized rate cut of 50 basis points this week, with an additional cut projected by the end of the year.
This move has dampened the recent recovery in U.S. Treasury bond yields and weakened the U.S. Dollar (USD), benefiting non-yielding assets like gold. Furthermore, economic uncertainty in the U.S. and China, along with escalating geopolitical tensions in the Middle East, have pushed investors toward safe-haven assets, further fueling gold’s rise.
The gold price continues to enjoy strong momentum, rising for the second successive day on Friday and poised to close in the green for a second straight week. Analysts suggest the outlook for gold remains bullish, supported by the Federal Reserve’s dovish stance and central banks in Asia and Russia increasing their gold purchases to reduce reliance on the USD.
Despite the market’s current risk-on sentiment limiting fresh bullish bets on gold, the fundamental backdrop favors further appreciation in the near term. Moreover, as geopolitical risks persist, including the Russia-Ukraine war and uncertainty surrounding U.S. political dynamics ahead of the November elections, gold is likely to retain its appeal as a safe haven.
Is BTC Price Lagging Behind?
Meanwhile, Bitcoin price, which briefly touched the $64,000 mark before retreating to around $63,700, has not kept pace with gold’s meteoric rise. Although BTC received a slight boost from the 50 bps Fed rate cut, it has struggled to regain its March 2024 highs.
Due to BTC’s sluggish performance since the start of the third quarter, Schiff’s criticism has resonated with traditional investors. He sees Bitcoin’s performance as lagging far behind gold, calling into question its status as a reliable store of value.
However, market analysts argue that September is historically a slow period for the crypto market, with October often seeing a rebound. Therefore, Schiff’s comparison between Bitcoin and gold may be premature at this point, as the crypto market is known for its cyclical nature. Moreover, prominent figures like Anthony Scaramucci and Robert Kiyosaki have doubled down on their $100,000 BTC price target for this year.
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