Economist Peter Schiff has renewed his criticism of bitcoin, questioning its status as “digital gold” after the cryptocurrency marginally dropped following Israel’s military strike on Iranian nuclear facilities. Gold Surges After Israeli Strikes Economist and bitcoin critic Peter Schiff appeared to reignite a feud with bitcoin maximalists by questioning bitcoin ( BTC)’s “digital gold” credentials […]Economist Peter Schiff has renewed his criticism of bitcoin, questioning its status as “digital gold” after the cryptocurrency marginally dropped following Israel’s military strike on Iranian nuclear facilities. Gold Surges After Israeli Strikes Economist and bitcoin critic Peter Schiff appeared to reignite a feud with bitcoin maximalists by questioning bitcoin ( BTC)’s “digital gold” credentials […]

Bitcoin Liquidations Surge to $1.16 Billion; Economist Claims BTC Is 15% Lower vs. Gold

3 min read

Economist Peter Schiff has renewed his criticism of bitcoin, questioning its status as “digital gold” after the cryptocurrency marginally dropped following Israel’s military strike on Iranian nuclear facilities.

Gold Surges After Israeli Strikes

Economist and bitcoin critic Peter Schiff appeared to reignite a feud with bitcoin maximalists by questioning bitcoin ( BTC)’s “digital gold” credentials after it plummeted 2% just moments following Israel’s strike on alleged Iranian nuclear facilities. According to data, bitcoin at one point traded at $103,081 late on June 12 before it appeared to stage a recovery.

Bitcoin Liquidations Surge to $1.16 Billion; Economist Claims BTC Is 15% Lower vs. Gold

Although the top digital asset and indeed the entire crypto economy were already in the red prior to Israel’s strike, the action appeared to exacerbate matters for BTC, with oil and stock markets also taking a hit. At the time of writing (June 13, 5 a.m. CAT), BTC traded around $103,327, down 4.5% from 24 hours earlier. The drop saw more than $1.16 billion in long and short positions liquidated within 24 hours.

Writing on social media, Schiff pointed to how BTC appeared to take a cue from traditional markets while gold, which is up more than 30% in 2025, went the opposite direction after the attack.

“Israel attacks Iran. Oil prices jump 5% while S&P futures fall 1.5%,” Schiff wrote. “In response, investors seeking a safe haven buy gold, sending its price up 0.85%. Meanwhile, investors dump Bitcoin, pushing its price down 2%. How can anyone consider Bitcoin to be a digital version of gold?”

‘Latecomers Left Holding the Bag’

According to Schiff, if bitcoin was indeed a digital version of gold, its price should have risen in line with that of the precious metal. Meanwhile, in an earlier post, the economist claimed that BTC was “now more than 15% below its Nov. 2021 peak” — that is, when priced in gold. He argued that BTC’s failure to rise against gold despite the hype that has lasted three and half years “is strong evidence that the bubble has peaked.”

Bitcoin Liquidations Surge to $1.16 Billion; Economist Claims BTC Is 15% Lower vs. Gold

For context, in November 2021, BTC reached its then all-time high of just under $68,000, while gold was below $1,800 per ounce, as shown by data from financial data provider Goldprice.org. While gold continued to make incremental gains in the two years that followed, BTC trended downwards, and by November of the following year, it had dropped to a low of just under $16,000.

Since then, BTC has trended upwards, with the top digital asset hitting a new all-time high of $111,814 on May 22. Gold, on the other hand, commenced its rally in the last quarter of 2023, with the precious metal reaching its peak of around $3,500 in April.

However, despite BTC nearly doubling its price since its November 2021 peak, Schiff insisted that the cryptocurrency is 15% lower, when “priced in gold.” He ended the post stating:

“A major top has been formed, as Bitcoin has been distributed from strong to weak hands. The whales have been cashing out to latecomers who will be left holding the bag.”

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BitcoinWorld Crucial US Stock Market Update: What Wednesday’s Mixed Close Reveals The financial world often keeps us on our toes, and Wednesday was no exception. Investors watched closely as the US stock market concluded the day with a mixed performance across its major indexes. This snapshot offers a crucial glimpse into current investor sentiment and economic undercurrents, prompting many to ask: what exactly happened? Understanding the Latest US Stock Market Movements On Wednesday, the closing bell brought a varied picture for the US stock market. While some indexes celebrated gains, others registered slight declines, creating a truly mixed bag for investors. The Dow Jones Industrial Average showed resilience, climbing by a notable 0.57%. This positive movement suggests strength in some of the larger, more established companies. Conversely, the S&P 500, a broader benchmark often seen as a barometer for the overall market, experienced a modest dip of 0.1%. The technology-heavy Nasdaq Composite also saw a slight retreat, sliding by 0.33%. This particular index often reflects investor sentiment towards growth stocks and the tech sector. These divergent outcomes highlight the complex dynamics currently at play within the American economy. It’s not simply a matter of “up” or “down” for the entire US stock market; rather, it’s a nuanced landscape where different sectors and company types are responding to unique pressures and opportunities. Why Did the US Stock Market See Mixed Results? When the US stock market delivers a mixed performance, it often points to a tug-of-war between various economic factors. Several elements could have contributed to Wednesday’s varied closings. For instance, positive corporate earnings reports from certain industries might have bolstered the Dow. At the same time, concerns over inflation, interest rate policies by the Federal Reserve, or even global economic uncertainties could have pressured growth stocks, affecting the S&P 500 and Nasdaq. Key considerations often include: Economic Data: Recent reports on employment, manufacturing, or consumer spending can sway market sentiment. Corporate Announcements: Strong or weak earnings forecasts from influential companies can significantly impact their respective sectors. Interest Rate Expectations: The prospect of higher or lower interest rates directly influences borrowing costs for businesses and consumer spending, affecting future profitability. Geopolitical Events: Global tensions or trade policies can introduce uncertainty, causing investors to become more cautious. Understanding these underlying drivers is crucial for anyone trying to make sense of daily market fluctuations in the US stock market. Navigating Volatility in the US Stock Market A mixed close, while not a dramatic downturn, serves as a reminder that market volatility is a constant companion for investors. For those involved in the US stock market, particularly individuals managing their portfolios, these days underscore the importance of a well-thought-out strategy. It’s important not to react impulsively to daily movements. Instead, consider these actionable insights: Diversification: Spreading investments across different sectors and asset classes can help mitigate risk when one area underperforms. Long-Term Perspective: Focusing on long-term financial goals rather than short-term gains can help weather daily market swings. Stay Informed: Keeping abreast of economic news and company fundamentals provides context for market behavior. Consult Experts: Financial advisors can offer personalized guidance based on individual risk tolerance and objectives. 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