Peter Schiff Admits He is Wrong about Bitcoin Price Movements
Gold bug Peter Schiff, who often speaks out against Bitcoin still thinks that Bitcoin’s drop to $10k is an indication of a bear market, admits that his predictions were at least flawed, and acknowledge that the coin did not collapse when gold hit a new all-time high last month.
Schiff exchanged words with Gemini co-founder in a Twitter exchange that began on September 6. While Winklevoss predicted the fall to $10,000, Schiff was far more bearish, saying Bitcoin (BTC) could consolidate before a crash. ” The more the 10K support level is tested, the weaker it gets, “Schiff said in an interview with the Wall Street Journal on Monday.
As per the Skew Analytics, the one-month correlation between gold and bitcoin reached a record high of 68% in early August. Twitter user Sharkybit was quick to echo the gold bug’s words, posting that bitcoin’s price would fall if gold soared. The market rarely gives investors many opportunities to buy, “Schiff said.
The correlation between the two assets briefly fell to 2.6% on September 2, but remained close to 0.20%, according to Skew Analytics. Bitcoin was valued at $10,251 at the end of August, after falling 15 percent from its record high of $14,000 on August 1. Gold, meanwhile, was pushed down to $1,934 an ounce in August after losing just 7.1%from a record low of less than $8,500 in July.
Although Bitcoin is no longer strongly correlated with gold, the crypto value has become “digital gold” after accounting for the appreciation of other digital assets such as Bitcoin Cash and Ethereum. Gold has made a 42.36% YTD return, while bitcoin has yielded between 42% and 36%, according to Skew Analytics.
