Cryptobitcoin
May 02, 2024 02:58 PM EDT
Through a series of tweets on the social media site X on Wednesday, economist and gold bug Peter Schiff shared his thoughts on bitcoin and the state of the US economy.
In response to questions about why the price of bitcoin fell below $57K on Wednesday in spite of previous months' enormous inflows into spot bitcoin exchange-traded funds (ETFs), he wrote: "Turn out the lights HODLers, the party is over," he said, pointing out that BTC is "down 23% in dollars, but 33% priced in gold, with one bitcoin now worth fewer than 25 ounces."
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Schiff has been critical of bitcoin after price drops on several occasions. He called Bitcoin a massive bubble and declared the end of the "fad" earlier this month, coinciding with a spike in gold prices. Furthermore, withdrawals of $635 million have occurred in five days in a row from U.S. spot bitcoin ETFs.
Furthermore, the economist frequently expressed worries about the state of the US economy. Schiff issued a warning earlier this month, stating that "significant" interest rate rises are required and that high inflation is returning "with a vengeance." Additionally, he chastised Jamie Dimon, the CEO of JPMorgan Chase, for underestimating the difficulties facing the American economy.
In March, the economist and gold bug disputes the Federal Reserve's inflation projections, claiming that the market anticipates a different course, which is reflected in the gold price of $2,234. "The Fed claims that inflation is headed down to 2%," he says. The $2,234 gold suggests that it is moving in the other way. Compared to the Fed, the market is a significantly more trustworthy indication. In actuality, the Fed would raise interest rates in response to the growing price of gold if it were truly data-dependent.
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