Peter Schiff Reveals the Real Reason Behind Bitcoin's Price Rally

• Alex Dovbnya

  Fri, 01/03/2020 - 16:25

  📰 News

  Peter Schiff of Euro Pacific Capital doesn't think that Bitcoin's recent price spike solidifies its status as a safe haven asset

The price of Bitcoin rallied by more than five percent on the news about the US killing the Iranian top general Qassem Soleimani. This prompted many crypto enthusiasts to further push the 'safe haven' narrative but gold bug Peter Schiff has a completely different take — these price moves were prompted by speculators.

Heightened geopolitical risk has resulted in both gold and Bitcoin moving higher, but for different reasons. #Gold is being bought by investors as a safe haven. #Bitcoin is being bought by speculators betting that investors will buy it as a safe haven.

— Peter Schiff (@PeterSchiff) January 3, 2020

Two different stories 

As reported by U.Today, Bitcoin and gold prices started to rise right after Soleimani died in a US airstrike ordered by US President Donald Trump. In the meantime, the US stocks took a hit, with the S&P 500 plunging by one percent after a stellar Santa Claus rally.  

However, Schiff is certain that gold is the only asset that is considered to be a safe haven by investors. Bitcoin, on the other hand, saw its value rising because of speculators who expect people to hoard more coins because of the growing geopolitical tensions. 

Can Bitcoin tank to $100?  

Schiff is one of the most unabashed Bitcoin critics who is convinced that the leading cryptocurrency is nothing more than a fraud. After Bitcoin dipped almost four percent yesterday, he was quick to name it the worst performing asset of the 2020s on Twitter.

The financial commentator expects Bitcoin to continue tanking at an even faster clip compared to the US equities. He suggested that the cryptocurrency that started it all could collapse just to the $100 level in a few years.