The gold freak still believes that Bitcoin's drop to $10,000 indicates a bear market. The gold freak might be Peter Schiff, CEO of Euro Pacific Capital and author of the best-selling book “Crash Proof.” Who spoke a lot against Bitcoin.
He admits that there is at least some flaw in his forecast after admitting that the currency did not “collapse” while gold rose to a new all-time high last month. In a Twitter exchange with Tyler Winklevoss, which began on September 6, Schiff exchanged words with the Gemini founder regarding Bitcoin's rise to a yearly high of more than $12,000 on August 17 and its decline to less than $10,000 just last week. While Winklevoss predicted that the digital asset's limits for all future declines would be $10,000, Schiff was decidedly more aggressive, suggesting that Bitcoin (BTC) could consolidate before the crash.
“The more the 10,000 support level is tested, the weaker it becomes,” Schiff said. “Markets rarely give investors much opportunity to buy during a decline.” However, Twitter user Sharkybit wasn't ready to let the word gold geek die out, posting a screenshot of Schiff's prediction on July 5 that the price of Bitcoin would fall as gold rose.
“I was right about gold, but I was wrong about bitcoin,” Schiff said. “The latter succeeded in breaking through resistance and jumping up to $12,000, thanks in large part to its association and partnership with gold and Grayscale purchasing a massive television advertising campaign.” “By retreating to $10,000, Bitcoin quickly returned to a bear market.” According to Skew Analytics, the one-month correlation between gold and Bitcoin reached a record high of 68% in early August.
As of this writing, the price of gold is $1,934 per ounce. Having fallen just 7.1% since hitting an all-time high of $2,089 on August 6. However, Bitcoin is currently valued at $10,251.
Having fallen 15% since it first rose above $12,000 this year on August 2. The correlation between the two assets has remained near 0-20% over the past two weeks, briefly falling to 2.6% on September 2. Although currently Bitcoin is no longer heavily linked to gold.
However, it is likely that the cryptocurrency asset will become digital gold in 2020. Taking into account past price correlations and future market trends. According to Skew, gold has a 27.22% YTD return, while Bitcoin has a 42.36% YTD return.
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