Bitcoin in Stealth Bear Market, Warns Peter Schiff

Peter Schiff, a prominent Bitcoin detractor, asserts that Bitcoin is in a "stealth bear market" when compared to gold. Despite the recent hype, Bitcoin remains below its all-time high in gold terms and has dropped by over 27% since its peak. Schiff, a staunch gold advocate, argues that Bitcoin's purchasing power has declined significantly, a fact often overlooked amid the market buzz.

Bitcoin's Stealth Bear Market: Peter Schiff's Scathing Critique

April 18, 2024 - New York, USA

Renowned economist and Bitcoin critic Peter Schiff has reignited his crusade against the world's foremost cryptocurrency, declaring that it has stealthily entered a bear market. Schiff's assertion, made just days before the highly anticipated Bitcoin halving, has sent shockwaves through the cryptocurrency community.

"Bitcoin is trading below 27 ounces of gold," Schiff tweeted, "and it's now down over 27% since hitting its record-high of 37 ounces of gold 2.5 years ago." He further emphasized that "given all the hype about Bitcoin and lack of coverage of gold, few likely realize Bitcoin is in a stealth bear market when priced in real money."

For Schiff, "real money" refers to the purchasing power of a currency or asset. On his podcast, he elaborated on his bearish stance, stating that "the price of Bitcoin is down to about 18.6 ounces of gold—the high was 27 two and a half years ago—so we're getting deeper into bear market territory."

Schiff's skepticism towards Bitcoin is a well-known stance, and his latest critique echoes his previous predictions. In August 2019, he boldly declared that "Bitcoin will never hit $50K." While the price of BTC did subsequently plunge below $7,000 and $4,000, it has since soared to over $60,000, proving Schiff wrong.

Despite his previous misjudgments, Schiff remains undeterred in his criticism of Bitcoin. He has repeatedly engaged in public debates with proponents of the cryptocurrency, arguing that gold is a superior investment. Schiff's unwavering advocacy for gold has earned him a large following among skeptics of Bitcoin.

In 2020, Bitcoin supporters flooded Schiff's digital wallet with BTC, a gesture intended to prove him wrong. However, Schiff later claimed to have lost the wallet, further fueling the animosity between him and the Bitcoin community.

Schiff has also dismissed the upcoming Bitcoin halving as a potential catalyst for a significant price increase. "None of these Bitcoiners want to acknowledge this," he said, "despite all the hype, ETFs, this big rally, Bitcoin never made a new high in real money... and it may not."

The halving, a programmed event that occurs every four years, reduces the block reward for miners by half. Historically, the halving has been followed by a significant surge in the price of Bitcoin. However, Schiff believes that this time will be different, as the market is already in a downtrend.

Schiff's bearish outlook contrasts with the optimism of many crypto market watchers and institutional investors. The price of Bitcoin has remained above $60,000 since February, and many believe that the halving will provide further impetus for growth.

Whether Schiff's predictions will come to fruition remains to be seen. However, his unwavering skepticism towards Bitcoin has sparked a heated debate within the cryptocurrency community, highlighting the ongoing division between proponents and detractors of digital assets.