- Gold reached a new all-time high of $3,176, while Bitcoin was still 30% below the record levels seen in February.
- Peter Schiff also noted that Bitcoin continues to decline against gold as the safe havens are being sought out.
- The prices of Bitcoin slumped as Trump announced new tariffs on imports from China, making the market unpredictable.
Gold prices rose to a record high of $3,176, extending the gap between the metal compared to Bitcoin. The world’s leading cryptocurrency is still down by nearly 30% from its February highs. This prompted backlash from Euro Pacific Asset Management CEO Peter Schiff, who said that Bitcoin is “losing” to gold due to instability in the market.
Bitcoin has been trading at around $79,669 after trying to break through the new high of $83,300. On the other hand, the rise of gold is common during increased risk due to the metal being associated with an investment haven. Similarly, Schiff used the low price of Bitcoin to argue that gold is still superior for preserving value.
Schiff also spoke about the more general tensions of the US financial market. He pointed out an unusual bearish sentiment over the US dollars, bonds, and stocks. He also pointed out that on a given day, the U.S dollar fell by 3.5% against the Swiss franc, which he referred to as a rare occurrence.
Schiff claimed that pressure on the United States economy could mount soon, implying that America’s emphasis on finance could be a thing of the past. He has implied that instead of cryptocurrency, investors will seek refuge in gold in the future as more instability unfolds.
Trump’s Tariffs and Inflation Concerns Shake Markets
The global financial markets perceived Trump’s tariff policy as ambiguous. While the temporary reduction in tariffs boosted the cryptocurrencies’ prices, the unabated hostility towards China has fuelled new concerns of prolonged unsteadiness in the global economy.
According to the latest U.S. Bureau of Labor Statistics, the inflation rate has slowed down over the past year to 2.4% in March. However, while inflation continues to decline, investors do not disregard the possibility of tariffs affecting the input and final price.
Some of his critics argue that Trump’s approach to trade is likely to negatively affect economic growth. There are also likely to be overall increased production costs for businesses and potentially new higher prices for consumer goods.
Bitcoin Technical Patterns Suggest Potential Rebound
Although the short-term picture for Bitcoin seems bearish, long-term technical indicators present signs of a bottom formation. Popular crypto analyst Rekt Capital pointed out that on X, Bitcoin has been establishing lower lows in the price pattern, and the Daily RSI is close to a bullish divergence. This usually marks a reversal when the RSI makes higher lows while the price falls.
Additionally, Bitcoin is still in consolidation between the two major bull markets, namely, the Exponential Moving Averages (EMA). Rekt Capital pointed out the 21 Weekly EMA that has been around $86,500 in a descending manner, putting more pressure on the Bitcoin price.
While short-term flows appear bearish, long-term bulls exist in the market. Cardano’s founder, Charles Hoskinson, earlier stated that Bitcoin would achieve $250,000 by the end of the given year or in 2026. According to Hoskinson, the increased adoption of Bitcoin by institutions, particularly technology companies such as Apple and Microsoft, may push the cryptocurrency to new heights.
