Peter Schiff, a known bitcoin critic, argued that the bitcoin rally was fake, a result of investors rushing to position liquidity as the Treasury buybacks announcement caught markets by surprise. Paradoxically, he recommended investing in gold for the same reasons.
Key Takeaways
Treasury doubled bond buybacks to $4B, triggering a bitcoin rally from under $65K to over $71K.Peter Schiff dismissed bitcoin’s surge as a “fakeout,” urging investors to sell crypto and buy gold instead.Schiff warned buybacks won’t stop rising yields, predicting the Fed will need to launch a new QE program.As bitcoin has once again become relevant in international capital markets, its critics have jumped to point out the problems behind this recent price breakout.
“Bitcoin’s rally above $72K is a fakeout, not a breakout. The Treasury buyback announcement caught markets by surprise,” Schiff declared.
“Bitcoin investors have long believed a return to easy money would be the catalyst for gold and Bitcoin to soar. They are only half right. Sell Bitcoin, buy gold,” Schiff assessed, promoting the precious metal over its digital counterpart.
Nonetheless, he stressed that the Treasury buyback announcement had not yielded the desired results and that a larger action might be needed, hinting at a revival of an official quantitative easing strategy, taking the Federal Reserve to resume its open market purchases.
“Treasury bond yields have already resumed their rise. Treasury is going to need a much bigger boat to stop this train. That means not only a much larger buyback than what has already been announced, but the Fed will have to join the party with an official QE program,” Schiff assessed.
