03.03.202106:43 Forex Analysis & Reviews: Peter Schiff criticized Wall Street investors for buying bitcoin

Exchange Rates 03.03.2021 analysis

Bitcoin is resurrected. At least, it tries very hard to be. After the traders failed to overcome the support level of $44,000, there is a steady desire of the market to resume the upward trend. However, in recent days, there is very little news that could suggest what awaits bitcoin in the future. Of course, the lack of news does not mean that transactions in the cryptocurrency market are not concluded, and investors have gone into the shadows. If a new wave of purchases of bitcoin begins, this will be reflected in the chart of the movement of "digital gold." But since it is important for us to take into account all the available factors in the process of forecasting the value of the cryptocurrency, we try to pay attention to everything more or less significant. So far, the key factor is really the support of $44,000 per coin, which could not be overcome. There were also data for February, according to which bitcoin miners earned more than $1.2 billion in a month. But such a large amount of earnings is a consequence of the growth in the value of the cryptocurrency itself. Five months ago, this amount would have been five times lower.

The well-known economist and president of the brokerage company Peter Schiff, who is an ardent supporter of gold and a critic of bitcoin, once again took a ride on "digital gold." According to Schiff, only fools invest in bitcoin, and he did not expect that there would be so many of them. Earlier, Schiff said that bitcoin is the largest bubble in the history of mankind. "Bitcoin owners are more confident than investors during the dot-com bubble and the mortgage crisis," Schiff said. He also noted that bitcoin can collapse at any time and lose up to 90% of its value, while gold will remain stable in price. Moreover, the end of the 2020-2021 pandemic crisis may lead to an even greater increase in the value of gold. Schiff recalled that during the 2008 crisis, gold fell by 25%, but then rose and updated its highs in value. In 2020-2021, gold fell in price by only 15%.

Thus, the confrontation between the supporters of classic gold and digital gold continues. Bitcoin, meanwhile, has returned to the level of $50,000 per coin and will now try to break through this psychological mark. Bulls need to trade cryptocurrency more actively, as any hype is usually much less prolonged than the movement that precedes it. In other words, the rise of bitcoin will not last forever. This is a wave, and it is quite short-term. It is unlikely that it will continue for more than 1 or 2 months. So, it is already possible to think about the fact that the cryptocurrency will start a strong fall. New investors are needed for growth, new good reasons are needed.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Paolo Greco,
Experto Analítico
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