Key Points
- Bitcoin has seen a 10% drop from its mid-March high, with a 7% drop in Q2.
- Peter Schiff believes Bitcoin’s Q2 performance will be worse than gold and silver.
Bitcoin’s performance at the beginning of Q2 2024 has been disappointing for bulls. The largest crypto asset by market capitalization saw a 10% drop from its mid-March high of $73.7K.
This translated to a 7% drop in Q2, with Bitcoin just managing to hold on to the $66K level at the time of writing.
Schiff’s Predictions
Peter Schiff, a long-time Bitcoin critic and financial commentator, criticized Bitcoin’s performance and praised gold and silver. He pointed out that in Q2 2024, silver was up 8.7%, gold was up 3.4%, while Bitcoin was down 7%.
Recent stronger inflation data has unsettled interest rate traders, dimming the odds of Fed rate cuts in June. This has led to poor market performance, not just for Bitcoin, but also for major indices like the S&P 500, Dow Jones, and Nasdaq.
Schiff used the Bitcoin slump to encourage his followers to invest in gold and silver, but was challenged by another user who pointed out that it was too early in the quarter to make such predictions.
Macro Headwinds and Gold’s Rally
Schiff remained confident, however, that Bitcoin would perform worse than gold and silver by the end of Q2. Macro headwinds are largely responsible for gold’s rally, as another user pointed out, with bonds selling off while gold moved 15% higher.
While it is too early to call Bitcoin’s Q2 performance dismal, these macro headwinds could also affect Bitcoin’s upside if they continue into Q2.
