Gold bug Peter Schiff believes that bitcoin’s recent fall signals the start of a new bear market. In response to a tweet by Gemini Co-Founder Tyler Winklevoss, Schiff, who is the CEO of Euro Pacific Capital, credited bitcoin’s surge over the past two months to a spillover effect from gold and a fortuitous television ad campaign.
In July, Schiff tweeted that he expected bitcoin to fall below its $9,000 resistance point and “crash” while gold would simultaneously surge. Now, as one Twitter follower noted, Schiff is moving the goalpost, saying on Sept. 6 that BTC $10K is now the level to watch.
In a rare display, Schiff also admitted that he was wrong about his mid-summer prediction.
‘Gold Surge and Grayscale TV Spot Responsible for Bitcoin Surge’
Winklevoss believes that bitcoin’s ability to stay above the $10,000 mark even during a dip signifies an oncoming breakout. Schiff responded that the price level could easily be a pre-breakdown consolidation and did not necessarily represent a bottom.
After being called out for his failed bitcoin crash prediction on the Twitter thread, Schiff responded that he was only wrong because of a residual effect of gold’s strong performance. According to him, bitcoin also benefited from the effect of a highly visible television ad campaign by crypto asset management and investment firm Grayscale.
Over the past two months, gold has performed strongly.
After threatening to fall below $9,000, bitcoin surged past $12,000 over the past two months before falling back toward $10,000 last week.
Grayscale Ad and Gold — Bitcoin’s Best Friends?
In the second week of August, Grayscale kicked off a marketing blitz with a new television commercial that aired on CNBC, MSNBC, Fox and Fox Business, coinciding with a full-page ad in the Financial Times by Mike Novogratz’s Galaxy Digital.
While the success of Grayscale’s ad campaign might have had a positive impact on bitcoin’s price, it is less clear what effect gold had on bitcoin. For one thing, analysts remain largely unconvinced that bitcoin and gold have any significant correlation.
On the other hand, a report published in August 2019 by Digital Asset Data indicated that over a three-month period, bitcoin had a positive correlation with the price of gold and an inverse correlation with stocks, which indicated a growing use of bitcoin as a store of value against uncertainty.