The Predicted Bitcoin Decline Did not Occur, as Gold Plunges by 4%
Peter Schiff predicted a looming decline in the price of Bitcoin to $1000, some time ago. Nevertheless, since currently, the prediction did not come true, Bitcoin’s price is on the upside, above $8500. As per CoinmarketCap and Kitco, Bitcoin’s price surged by 7.5% within the previous week, while Gold declined by 4%.
On the other hand, the XAU/USD price attained highs of $1610 on the 8th of January but after that fell dramatically. At press time, the price was at $1546.
Crypto Enthusiasts View on Bitcoin Upsurge and Gold Decline
Crypto enthusiasts see the trend coming as geopolitical troubles centered on Iran appear to a beacon of Bitcoin’s price performance. However, some crypto enthusiasts do not agree, as there is a standard theory suggesting that both Bitcoin and gold benefit from such political upheaval. However, some consider the correlation much less convincing.
On the 13th of January 2020, analysts in Dukascopy, Switzerland, pointed out that a reversal should happen for some time because gold is getting over purchased. Additionally, they claimed that XAU against the USD might experience a further decline to $150 soon.
Besides, individuals who preferred gold to Bitcoin experienced more pressure due to the overwhelming progress for gold piles. About two months ago, Peter Schiff, a renowned crypto critic, said BTC/USD was shoeing a price pattern he called ‘head-and-shoulders’ and would soon decline to $1000.
The last time Bitcoin’s price reached $1000 was in early 2017. Schiff’s claim did not happen, as Bitcoin beat gold as an investment opportunity in 2020, while seventeen days ago, Schiff’s tweeted that Bitcoin was the only asset not rallying.