After a recent flash crash, the price of bitcoin dropped to little over $61,000. Peter Schiff claims that this amount is equivalent to about 26 ounces of gold. It was pointed out by well-known Bitcoin critic Peter Schiff that two and a half years ago, one Bitcoin was worth 37 ounces of gold.
Schiff notes that, at least as compared to the conventional safe-haven asset, gold, this 30% decline indicates that Bitcoin is clearly entering a bear market.
His prior advice to invest in gold rather than Bitcoin while the latter was selling around the $20,000 mark has drawn criticism, particularly given that Bitcoin’s price currently hovers around the $65,000 mark despite its volatility.
At now, the 200-day moving average, which serves as a significant support level, is being crossed by the price of digital gold, which is close to $49,800. Should the price of Bitcoin remain above this barrier, it may suggest that investors still have trust in the market and that a recovery is possible. The $67,300 mark represents resistance, and a break of it may refute the negative view and indicate a potential positive turnaround.
Regarding growth options, Bitcoin may resume its upward trajectory if it consolidates over the $61,000 mark and then pushes steadily above the $67,300 barrier. A rise like this would be necessary to refute the negative viewpoint and might indicate that there are other indicators outside Bitcoin’s gold price that indicate the health of the market.
But contrary to popular belief, there are differences between Bitcoin and gold in terms of their roles and responses to the market. Bitcoin functions as a digital store of value and exposes investors to greater risk than gold, which is more of a conventional safe haven asset.
