The price of Bitcoin has taken a hit during intraday trading. At the time of writing, Bitcoin is currently trading at a price of $9,540. This means that Bitcoin has fallen around 7% since yesterday. Moreover, crypto naysayers have taken this opportunity to gloat over this recent price fluctuation.
Bitcoin’s price suddenly drops below $9,500
This drastic price drop has been reflected in the wider crypto market as well. At the time of writing, Ethereum is trading at $167, Ripple’s XRP token is trading at $0.25 and Bitcoin Cash is trading at $280. At one point, Bitcoin even dipped below $9,500. Now, however, the premier crypto trades around $9,540.
As such, the entire crypto market is showing red across the board. This has caused Peter Schiff, the well-known investor, to gloat over the renewed volatility in the crypto market. Schiff is known to be a proponent for gold as a hedge against economic uncertainty.
Consequently, Schiff sent a series of tweets denouncing Bitcoin. Moreover, he noted that Bitcoin’s recent price drop means that Bitcoin has now “failed” a test over whether the cryptocurrency can be considered a safe asset haven.
“Bitcoin has again failed the safe haven test. On Friday, as escalating trade tensions sent global stock markets plunging, investors sought refuge in monetary safe havens. The Japanese yen, Swiss franc, and especially gold all moved higher. Yet Bitcoin plunged by more than stocks!”
This comment came in relation to a popular theory regarding Bitcoin investment trends. Specifically, the theory goes that the current macroeconomic climate could accelerate Bitcoin investments.
Peter Schiff denounces Bitcoin, tries to promote gold and silver instead
For example, the escalating trade war between the United States and China, unrest in Hong Kong, and growing concerns over a possible no-deal Brexit means Bitcoin may be a more attractive asset alternative. Nevertheless, it appears Schiff is attempting to disprove this theory.
With this said, however, it is not clear Schiff’s take on the situation is correct. Several Bitcoin supporters have since rebuffed his suggestion. Instead, it appears Schiff is primarily attempting to promote precious metals as an alternative to cryptocurrencies.
“Since last Thursday Bitcoin has lost more value than any of the major stock market indexes, while gold and silver have gone up.”
Furthermore, the latest drop in the price of Bitcoin comes after the overall Bitcoin network volatility reached record two-month lows.
Furthermore, prior to this drop, Bitcoin had remained above $10,000 for the longest consecutive time in its history. Nevertheless, some have speculated that this latest drop in the price of Bitcoin was caused by the US Treasury.
The US Treasury Secretary, Steve Mnuchin, recently revealed that the US government was considering ultra-long bonds. In fact, these bond could reportedly be up to 50 or even 100 years.
If they become reality, such bonds could decrease borrowing costs for the US government. Moreover, it could also lower US taxpayer’s exposure to the US’ long-running budget deficit. Some have speculated that this announcement could have upset the crypto market, leading to the latest price fall.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.