Bitcoin and cryptocurrency critic Peter Schiff has yet again called out Bitcoin (BTC), stating that the recent FTX fiasco proves that Bitcoin’s last year’s rally top $69,000 “was a fraud.” He followed up with a series of tweets over the past 24 hours, all of which thrashed BTC and touted gold as a better investment.
A year ago #Bitcoin hit $69,000. One of the main reason for the spectacular rally was all the leverage that funded unprecedented #crypto advertising and speculative buying. The #FTX bankruptcy proves the entire rally was a fraud. It will never be repeated. Bitcoin mania is over.
— Peter Schiff (@PeterSchiff) November 11, 2022
To further double down on his views, Schiff recalled cryptocurrency asset manager Grayscale’s ‘Drop Gold’ ad campaign from 2019, stating that while the massive campaign pushed the price of GBTC to $17.40 at the time, the effect wasn’t long-lasting. He went on to explain with an example, stating:
Had you dropped $10K worth of gold and bought $GBTC at that time, you would now have $5K left. Had you kept #gold it would now be worth $13.5K.
Schiff also discussed inflation, adding that while the dollar index dropped 4% over the week, Gold has continued to rise, jumping as much as 5%, its highest-ever weekly rise since March 2020. He compared Bitcoin’s performance over the same period, emphasizing that the flagship cryptocurrency was down 20%.
“Hedge with gold, not Bitcoin,” he added.
Schiff’s comments came a day after the Bitcoin critic remarked on Block.fi’s declaration regarding its inability to function as expected. In light of what he said was coming in the near future, he urged his followers to liquidate whatever remaining Bitcoin they had on exchanges.
The gold advocate believes that the crypto market is too risky to invest in, adding that the Fed’s recent pivot will not prevent a crash. Indeed, while Bitcoin just about made it into the green by day’s end, the unexpectedly positive CPI served as fuel for the stock market, driving the S&P 500 up by 5%.
Bitcoin advocates have also turned bearish, with Rich Dad Poor Dad author Robert Kiyosaki stating that he expects Bitcoin to drop as low as $10,000. However, he added that when BTC hits those levels, he would “get EXCITED, not worried.”
“I bet against the Fed, Treasury, Biden, & bet on G,S, & Bitcoin,” he added.
