u.today
Controversial financial pundit Peter Schiff has predicted that the price of Bitcoin might collapse to $10,000.
He claims that millions of young Americans are currently distracted by the leading cryptocurrency while gold is hitting record highs.
"By the time gold hits $5K, they'll likely ride Bitcoin down to $10K, a 95% decline from its 2021 peak priced in gold," he said.
Earlier today, the yellow metal soared to a new all-time peak of $3,086 amid global trade tensions.
Meanwhile, Bitcoin has just plunged to a new intraday low of $84,414, losing 2.3% over the past 24 hours. Altcoins are getting hammered, with Ethereum (ETH), XRP, and Solana (SOL) plunging by more than 6%.
The U.S. stocks are also taking a significant hit, with the tech-heavy Nasdaq 100 index losing more than 1%.
At press time, gold is up 32.3% against Bitcoin since the start of the year. The flagship cryptocurrency is worth 27.4 gold ounces, which marks a 33.5% decline from the peak of 41 ounces that was reached in December. It is worth mentioning that Bitcoin still barely managed to log a new record high in gold terms compared to its 2021 peak.
Will Bitcoin have its time to shine?
The celebration of goldbugs might be premature. As reported by U.Today, Chris Kuiper, director of research at Fidelity's digital assets unit, recently recalled how Bitcoin started racing ahead of gold after underperforming in 2019 and 2020. The retail-focused cryptocurrency tends to shine during the final stages of "euphoric bull runs," but both assets are driven by the same market forces, according to Kuiper.
At the same time, ByteTree founder Charlie Morris has noted that inflows into gold ETFs are slowing amid the price rally.
"Gold trades at an all-time high, but flows are slowing. In the meantime, Bitcoin may have seen the worst," he said.
The fact that Bitcoin ETFs have now recorded 10 consecutive days of positive flows might provide bulls with some comfort amid another price correction.