Gold has reached a new all-time high, surpassing $3,400, as global economic concerns continue to drive investors toward safe-haven assets. Renowned economist and crypto critic Peter Schiff believes the precious metal could rise even further, particularly if the U.S. Federal Reserve cuts interest rates. However, while Bitcoin has shown modest growth, Schiff questions whether it can match gold’s momentum.
Schiff’s Outlook on Gold and the Federal Reserve
In a recent post on X, Schiff reiterated his long-standing belief that gold is an ideal hedge against inflation, especially in the current macroeconomic environment. He points to the U.S. dollar index (DXY) falling to a three-year low and the escalating U.S.-China trade tensions as contributing factors to gold’s surge. Schiff suggests that if the Federal Reserve lowers interest rates, gold’s upward trajectory could accelerate, as the weakening dollar and rising economic instability would further boost demand for the metal.
Schiff also highlighted gold’s intrinsic value, its limited supply, and its role as a reliable store of wealth. He argued that while Bitcoin has garnered attention, it remains too volatile to serve as a stable investment. Schiff has been vocal in his criticism of Bitcoin, dismissing it as a speculative asset. In a previous update, he criticized former President Trump’s Bitcoin reserve plan, especially after a significant 12% drop in Bitcoin’s price.
Gold’s Rally Amid Economic Fears
Gold’s price soared by 2% on April 21, reaching a record-breaking $3,400. This surge is largely attributed to concerns over inflation and the weakening of the U.S. dollar. Investors are increasingly flocking to gold as a safe-haven asset, driven by fears of economic instability and trade wars. If these issues persist, some market experts speculate that gold could climb to $3,500 by mid-2025.
As investors shift away from riskier assets, gold’s reputation as a stable investment has been reaffirmed, reinforcing its appeal during times of economic uncertainty.
Bitcoin’s Performance and Market Sentiment
Meanwhile, Bitcoin has continued to show signs of growth. According to CoinMarketCap, Bitcoin was trading at $86,882.25, up by 2.76%. The cryptocurrency briefly hit its highest price in a month, prompting speculation that it might follow gold’s bullish trend. However, some experts remain unconvinced.
Despite Schiff’s bearish stance, other prominent figures like Robert Kiyosaki have a more optimistic view of Bitcoin’s potential. Kiyosaki has predicted that Bitcoin could reach between $180,000 and $200,000 this year, citing its fixed supply and the ongoing economic uncertainty. Additionally, Michael Saylor’s MicroStrategy recently purchased 6,556 BTC for $555 million, a move that has boosted both Bitcoin’s price and the company’s stock.
As the debate continues over Bitcoin’s role as a hedge against inflation, Schiff’s skepticism stands in stark contrast to the growing belief among some investors that Bitcoin could be an alternative to gold in the current economic landscape. Whether Bitcoin can truly mirror gold’s rally or establish itself as a safe-haven asset remains uncertain, but the cryptocurrency’s performance continues to intrigue investors.
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