U.Today

Peter Schiff, a well-known critic of Bitcoin, is once again sounding the alarm, claiming that the digital asset is in a bear market. Schiff notes that Bitcoin has underperformed dramatically compared to gold, with the price of the cryptocurrency dropping by roughly 40% since its peak almost three years ago.

Schiff gives HODLers a direct message: Bitcoin's ongoing difficulties may indicate that investors are failing to acknowledge the realities of the market. Although Bitcoin is presently holding above the crucial $60,000 support level, Schiff warns that this is likely a temporary state.

He points out that the weakness of Bitcoin in comparison to gold is becoming more obvious as global macroeconomic conditions continue to burden risk assets like Bitcoin. However, information from Glassnode offers a more complex picture of recent Bitcoin market behavior.

About 4-5% of all net capital inflows into Bitcoin since January can be traced back to U.S. spot ETFs. The cost basis of these ETFs ranges from $54,900 to $59,100, leading many institutional investors close to the break-even point. There is a risk that these investors may begin to sell Bitcoin if it falls below these levels, creating a fragile outlook for Bitcoin.

Schiff advises investors to reevaluate their bullish positions, despite the support level holding firm. The larger trend remains unclear.

Key levels to watch:
– Below: $59,000
– Above: $64,000

If Bitcoin breaks below $59,000, it could enter even more bearish territory, while climbing above $64,000 may rekindle optimism for a broader rebound. As the saying goes, time will reveal who truly needs Bitcoin.

This article was originally published on U.Today