Bitcoin Surge To ATH Above $126K “A Bear Market Rally” Compared To Gold, Says Peter Schiff
Gold investor and known Bitcoin critic Peter Schiff says that the recent surge in BTC’s price to a new all-time high (ATH) is “just a bear market rally” since the crypto is still down in terms of its gold price.
He noted both gold and Bitcoin’s recent ATHs in an X post, but said that BTC is “still about 15% below its record high” in terms of gold.
“I still think it’s too early for Bitcoiners to get excited about the rally,” he wrote, adding,”Until Bitcoin can make a new high priced in gold, it’s just a bear market rally.”
Gold And Bitcoin Soar To ATHs Amid Market Uncertainty
Schiff’s post comes after investors flocked to Bitcoin and gold, which are often seen as safe-haven assets amid macroeconomic uncertainty, in the last 24 hours amid the ongoing US government shutdown.
With capital flowing to the two assets, both the price of gold and BTC continued to climb, setting new record highs in the process.
The price of gold soared to a new ATH of $3,977.19 per ounce, before a minor pullback to settle at $3,959.36 as of 6:38 a.m. EST, according to TradingView data.
Gold price (Source: TradingView)
Meanwhile, Bitcoin went on to record its second ATH in 48 hours, soaring to as high as $126,198.07 just 24 hours after it managed to break above $125K for the first time, CoinMarketCap data shows.
In order to match its record high in gold, Schiff said “Bitcoin would have to rise to about $148K.”
Bitcoin Could Reach Half Of Gold’s Market Cap By Next Halving
As the prices of gold and Bitcoin continue to climb, asset management firm VanEck predicts that the crypto could be worth half as much as gold by its next halving, which is slated for 2028.
According to the firm’s head of digital asset research, Matthew Sigel, the recent gold prices puts the “equivalent value” for Bitcoin at $644,000 if the prediction plays out.
“Roughly half of gold’s value reflects its use as a store of value rather than industrial or jewelry demand, and surveys show younger consumers in emerging markets increasingly prefer Bitcoin for that role,” Sigel wrote.
In a report shared on X, Sigel also said he believes Bitcoin will solidify its position “as a key international medium of exchange” by 2050 to ultimately become one of the world’s reserve currencies.
“This projection is rooted in the anticipated erosion of trust in current reserve assets,” Sigel wrote in the report.
“The combination of Bitcoin’s immutable property rights and sound money principles with the enhanced functionality provided by L2 solutions could enable the creation of a global financial system capable of better meeting the developing world’s needs,” he added.
“Using assumptions about global growth, investor BTC demand, and Bitcoin’s turnover, we apply a velocity of money equation to suggest a potential price of $2.9M per Bitcoin, translating to a total market cap of $61 trillion,” the analyst wrote.
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