Peter Schiff: Nasdaq downgrade and continued rise in gold prices hit BTC's long-term trend.

Famous economist and gold bull Peter Schiff was invited for an interview on 11/5, where he once again criticized Bitcoin (BTC), emphasizing that the BTC trend has weakened and that it is not an asset. He believes that Wall Street and the U.S. government are creating a false impression for retail investors that crypto assets are a hedge against inflation, but in fact, gold is the only truly valuable thing.

BTC is unable to rise, decoupled from the Nasdaq index.

Schiff stated that BTC is currently performing significantly weaker than the NASDAQ index, and that index has recently reached new highs, but BTC has not followed suit, which is a dangerous signal. He pointed out that BTC used to be highly correlated with the NASDAQ index, but now it has started to stagnate. If the index corrects next, BTC could be directly knocked down.

He pointed out that if BTC were priced in gold, it would have already reached its peak back in 2021. The slight increase brought by Trump's victory was just a flash in the pan, and it has long returned to a downward trend.

The Nasdaq index reached a historical high of 23,958 on 10/29, while BTC has fallen to 102K. Schiff believes this is quite dangerous. He claims that the faith in BTC will eventually collapse, as it has no intrinsic value.

In response to the host's question about whether he has always been mistaken, Schiff replied:

“I don't think I'm wrong. BTC is only supported by faith, and faith will eventually reach its peak.”

He believes that BTC is just a price being speculated up and has no intrinsic value. Even if it does, it only exists in the case that someone is willing to take the risk. Schiff stated bluntly:

“Bitcoin is a bigger fool's game. When there aren't enough new buyers, the price will crash. In the end, even the original believers will wake up.”

Gold is the truth, BTC is just a bunch of code.

In response to the skepticism regarding the reliance on faith for gold prices, Schiff rebutted by stating that gold is the most useful metal on Earth, possessing qualities that no other metal has. He emphasized that the rarity of gold, along with its conductive and anti-corrosive properties, gives it practical applications in electronics, medicine, and industry.

“If gold were not rare and expensive, it would be used more in the industrial sector.”

Schiff pointed out that gold is also used as currency, and central banks hold gold as currency because it has intrinsic value, rather than being based on trust alone, unlike BTC, which has no physical backing and is just a bunch of code.

Wall Street and the Trump administration indirectly foster the BTC bubble.

Schiff believes that Bitcoin has not yet experienced a major crash because this time both Wall Street and the U.S. government have participated, he pointed out:

“From the Trump administration to some members of Congress, the entire national system is promoting BTC, leading more people to mistakenly believe that this investment is supported by the government.”

Schiff sarcastically stated:

“The Trump family is no longer a real estate family, but rather a 'crypto family'. Since taking office, they have made more money in Crypto Assets than they ever did in real estate and television.”

He then turned to criticize Wall Street institutions for merely cashing in while the market is hot, pointing out that firms like Morgan Stanley and JPMorgan opening BTC investment products do not truly believe in the market but act like casino operators, taking a cut as long as investors keep betting.

Schiff bluntly stated:

“The history of Wall Street is full of bubbles, from internet stocks to the housing market and then to the subprime mortgage crisis, each time entering at the peak and ultimately relying on government intervention for rescue. What they are doing to BTC now is no different.”

The clues can be seen in the gold price; the depreciation of the US dollar trading has just begun.

Speaking of his long-term advocated “Debasement Trade” (Debasement Trade), Schiff stated that this trend has just begun, he remarked:

“I started buying gold more than twenty years ago, when it was less than 300 dollars an ounce, because the U.S. would eventually devalue the dollar, and the current situation will only get worse.”

He believes that the dollar has not fallen significantly for the time being, not because it is stable, but because other fiat currencies such as the euro, yen, and pound are also unreliable. In a situation where fiat currencies worldwide are generally losing trust, investors can only turn to gold.

Schiff warns:

“If you wait until the US dollar or bond market crashes to take action, it will be too late. The price of gold has long reflected the decline in market confidence, yet no one cares, and that is the most dangerous part.”

Mining stocks outperform BTC, consensus trading may become a bubble warning.

Schiff stated that if he were to invest in high-risk products, he would prefer to choose gold and silver mining stocks that have physical backing, rather than BTC.

He explained that mining companies have actual assets, so their decline is limited, but their rise could multiply several times. Although BTC may double again, it could also crash by ninety percent. He criticized the current market's almost unanimous bullish sentiment towards BTC, noting that this atmosphere of universal belief often serves as a warning sign that a bubble is about to burst.

(Peter Schiff: Bitcoin priced in gold has entered a bear market, and the ice age of crypto assets is coming!)

This article Peter Schiff: The downward revision of the Nasdaq and the continued rise in gold prices hit the long-term trend of BTC first appeared on Chain News ABMedia.