Echelon Wealth Partners co-founder Peter Schiff has predicted that both Bitcoin and altcoins will be “rugged” by gold.
The warning comes amid an intense cryptocurrency market sell-off. Earlier this Tuesday, the flagship cryptocurrency plunged to an intraday low of $120,702, according to CoinGecko data. It is now down by more than 3% from the record high of $126,080 that was achieved last week.
Earlier today, roughly $3.9 billion worth of coins moved on-chain, which seemingly coincided with the sell-off.
Schiff is convinced that BTC is currently stuck in “a bear market rally” until it can actually log a new all-time high against gold.
Gold tops $4,000
In the meantime, gold continues its relentless rally, recently reaching $4,000 per ounce for the first time.
The leading safe-haven asset has so far crushed Bitcoin this year, outperforming its digital rival by nearly 17%.
The massive rally has been fueled by such factors as stubbornly sticky inflation, weakening U.S. dollar as well as geopolitical instability.
The yellow metal’s most recent record high comes amid the U.S. government shutdown.
That said, Bank of America (BofA) recently warned that the gold price uptrend might be facing exhaustion following a whopping 50% rally.
Meanwhile, Schiff (predictably) expects the Bitcoin sell-off to accelerate.
“As gold tops $4k, it’s likely that Bitcoin will sell off, taking the rest of crypto with it,” the gold bug said in his most recent social media post.
Fed’s policy is “wrong”
The recent gold spike also comes after the Fed recently implemented a much-awaited rate cut.
According to Schiff, the rally indicates that the central bank’s policy is “wrong.”
The pundit is urging the central bank to reverse course by hiking interest rates.
“The Fed needs to reverse course immediately, raise interest rates between meetings, and signal that more rate hikes are coming,” Schiff said.
