In an impressive rally, Bitcoin (BTC) briefly broke the $42,000 barrier on Monday, December 4, marking its highest point since April 2022.
Bolstered by a robust 20% surge over the past month, the cryptocurrency’s rally is fueled by optimism surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) by US regulators and expectations of Federal Reserve rate cuts in 2024.
Amidst bullish projections, with some anticipating Bitcoin surpassing $100,000 by end-2024, some retained their bearish stance on the maiden crypto asset. Notably, a prominent US stockbroker and economist warns that the current uptrend is transient, saying BTC’s “collapse will be more spectacular than its rally.”
Unlike Bitcoin, “gold’s rally is real,” says Peter Schiff
Peter Schiff, an American economist, financial broker, and a known gold advocate, said in a December 4 post that Bitcoin’s latest spike has been allowed by a pullback in gold’s price.
“Gold pulling back below $2,100 has provided a catalyst for Bitcoin to spike near $41K. This could be Bitcoin’s swan song.”
– said Schiff in his post.
In the same X post, Schiff implied that BTC’s rally is being fueled by a “speculative frenzy around spot Bitcoin ETFs,” adding he expects that to end soon. This will lead to a stunning crash in Bitcoin’s price, he said, while expecting gold to remain resilient.
“Bitcoin’s collapse will be more spectacular than its rally. In contrast, gold’s rally is real.”
Schiff’s remarks do not come as a surprise, given that he’s been a staunch advocate for gold as a fundamental component of investment portfolios, arguing that it serves as a reliable hedge against inflation and economic uncertainty.
He emphasizes gold’s historical role as a store of value, asserting that its tangible nature makes it a more enduring and trustworthy asset compared to fiat currencies.
Commodity guru says ‘gold could be a top performer’ in 2024
While he did not comment on Bitcoin’s 2024 prospects, Bloomberg’s senior commodity strategist Mike McGlone somewhat shared Schiff’s sentiment regarding gold’s rally.
In particular, McGlone said “gold could be a top performer again in 2024,” citing recessionary signals. He pointed out that energy ranks at the bottom of our commodity-sector annual performance, while precious metals, including bullion, are leading the pack.
This trend could further be accelerated by a “typical stock market drawdown for a recession,” he added.
At the time of publication, the price of gold was sitting at $2,068 per ounce, up 13.5% since the start of the year.
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