Peter Schiff on Bitcoin's Rally: What's Behind Growth?

Economist and longtime Bitcoin skeptic Peter Schiff has commented on Bitcoin’s recent surge while taking aim at Michael Saylor's Strategy.

In response to Michael Saylor's tweet on April 28 announcing Strategy's $1.42 billion Bitcoin (15,355 $BTC) acquisition, Schiff wrote, "So now we know why Bitcoin rallied so much. I wonder how much longer it will take for your average price to be above the market price."

Schiff's response highlighted Bitcoin buying pressure contributed to by Strategy, which now holds 553,555 $BTC, acquired for nearly $37.9 billion. Strategy has achieved a $BTC yield of 13.7% year-to-date.

As previously reported, Schiff stated in late March that Bitcoin demand came from two key sources, one of which was Strategy's aggressive Bitcoin buying.

Bitcoin rose for seven days in a row over the last week, reaching highs over $95,976 before returning to range trading. As Bitcoin returns above $94,000, Schiff attributes Bitcoin's rally to Strategy's massive Bitcoin acquisition. Another reason, although not mentioned by Schiff, was ETF-driven inflows.

ETF inflows return

Cryptocurrency investors waded back into the market last week, riding a surge in Bitcoin.

Exchange-traded funds tracking Bitcoin and Ethereum received more than $3.2 billion last week, with the iShares Bitcoin Trust ETF alone receiving $1.5 billion, the biggest this year, according to Bloomberg.

Other Bitcoin-focused funds saw significant infusions, with investors contributing more than $620 million to the ARK 21Shares Bitcoin ETF and over $574 million to the Fidelity Wise Origin Bitcoin Fund.

The gain coincided with a significant rise in risk assets, including the S&P 500, with Bitcoin up nearly 8% weekly.