After Israeli forces launched retaliatory strikes against Iran, gold prices surged, stabilizing around $2,388 per ounce after momentarily reaching $2,400. This occurred within the backdrop of a 1.85% increase in gold prices over the last five days. Concurrently, bitcoin has seen an 8% decrease since the conflict began on April 13. Amidst these market movements, economist Peter Schiff declared, “the bitcoin fad is over.”
Gold Surges, Bitcoin Dips Amid Middle East Tensions
As the situation escalated, gold reached a high of $2,413 per ounce following the Israeli attack, which an Israeli government official stated was a direct message to Iran, demonstrating Israel’s strategic capabilities. U.S. Secretary of State Antony Blinken clarified that the U.S. was neither involved in nor informed about the Israeli actions beforehand. During this period, bitcoin’s value plummeted, briefly dipping below $60,000 to $59,629.
However, ten hours later, bitcoin had recovered slightly by 1%, with prices stabilizing at $64,531 per coin, while gold prices receded from their peak to $2,388 per ounce.
Peter Schiff Declares ‘Bitcoin Fad Is Over’
In light of these events, Peter Schiff swiftly criticized bitcoin, noting the contrast between the stability of gold and the volatility of bitcoin after the Middle East events. “Explosions In Central Iran and Israeli Airstrikes in Iraq and Syria send stock futures tumbling and oil spiking,” Schiff observed on Thursday evening.
He elaborated on the immediate market reactions: “Gold immediately rallies 1.6% to $2,416. Bitcoin immediately tanks 4% down to $61K. Which one is a safe haven and which one is a highly speculative digital token?”
Schiff did not hold back in his critique of bitcoin, suggesting that silver, which had risen by 1.75%, was a better investment. “Not only is gold trading at a new record high, but silver is outperforming, up 1.75%. If you want gold 2.0. just buy silver. The bitcoin fad is over,” he asserted.
In contrast, onchain analyst Willy Woo challenged Schiff’s assessment, providing a long-term perspective on the performance of gold relative to bitcoin. Sharing a chart, Woo highlighted, “Gold has dropped from 1.75 million BTC per oz to 0.039 BTC per oz. Or 4,500,000x less spending power over a 15-year trend.”
Woo pointed out that Schiff’s moment for celebration was misplaced, noting:
I’ve marked in champagne emojis the 4 times Peter can legitimately celebrate. This occasion is not one of them.
This exchange led others to comment on Schiff’s predictive track record, with one observer humorously noting, “Peter has called 27 of the last 1 economic crises,” suggesting skepticism about Schiff’s frequent bearish predictions on cryptocurrencies relative to gold.
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