Bitcoin has had a rough week so far as the price of the asset went from over $12,000 to as low as $9,900 in just five days. This rally has brought back gold bug Peter Schiff yet again as we have seen on several occasions, to criticize Bitcoin, this time claiming that the asset has entered a bear market.
On September 5, Gemini CEO Tyler Winklevoss wrote on twitter that Bitcoin is “consolidating before its next breakout.”
In a response to Winklevoss’s tweet, the CEO of Euro Pacific Capital opposed Winklevoss’s prediction of all future Bitcoin dips having a baseline of $10,000, claiming that the asset is consolidating before it crashes.
“The more the 10K support level is tested, the weaker it gets. Markets rarely give investors that many chances to buy the bottom.”
Wrong about Bitcoin
One twitter user going by the username Sharkybit got back at Schiff, posting a screenshot of Schiff’s prediction on July 5 where Schiff had predicted the gold would continue rising and Bitcoin would drop below $9000.
In a rare display, this time Schiff admitted that he was wrong about Bitcoin, stating:
“I was right on gold, but wrong on Bitcoin. The latter did manage to get through resistance and rally up to $12K, thanks in large part to a ride on gold’s coattails and a massive TV advertising buy by Grayscale.”
However, Schiff continued to stick to his narrative, concluding that “by falling back to $10K Bitcoin quickly returned to a bear market.”
Schiff believes that the massive TV ad campaign by crypto asset management and investment firm Grayscale has greatly benefitted Bitcoin. The ad campaign had resulted in a $217 million investment inflow towards Grayscale’s cryptocurrency funds.
It is indeed true that this had a positive impact on the price of the number one cryptocurrency, but this is perhaps the only time Peter Schiff has been right about Bitcoin as the gold bug is usually referred to as the counter-indicator for Bitcoin for his flop predictions.
According to Skew Analytics, Bitcoin and Gold had been displaying increased correlation before hitting an all-time high of 68% earlier in August. Since then, Gold has dropped 7.3% after hitting a high of $2,089 on August 6.
However, at the time of writing Bitcoin is worth $10,121 and is down 15% from its first break above $12,000 on August 2. Correlation between the assets has also dropped and currently remains in between 0-20%.