In a recent tweet, core BTC critic Peter Schiff doubled down on his bearish stance about the cryptocurrency. He labeled it “the biggest misallocation of resources in human history.”
Schiff, who has long argued that Bitcoin and other digital assets lack intrinsic value, described the surge in popularity around Bitcoin, crypto, and blockchain as “the biggest example of popular delusions and the madness of crowds in world history.”
Talking about the leading asset, he said:
This is likely the biggest misallocation of resources in human history. Not only will the net losses to society be staggering, but Bitcoin itself will do more to tarnish the reputation of libertarian capitalism and the concept of sound money than any failed government program ever has.
~Peter Schiff
Schiff warns of a disconnection from fundamentals
According to TradingView data, Bitcoin was trading around $62,000 a month ago. BTC has recently achieved a historic milestone, surging over the $89,000 mark for the first time. The digital asset has risen by more than 40% since then.
Recent progress has sparked reactions from various parties and even caught the attention of notable cryptocurrency skeptic Peter Schiff, who shared his doubts about Bitcoin’s surge by pointing out its detachment from fundamental aspects. Schiff further claimed that the US economy is on the verge of a boom, with improving debt-to-GDP ratios potentially reducing demand for dollar alternatives.
#Bitcoin's rise has nothing to do with its supposed fundamentals. The U.S. dollar is rising, #gold is falling, and the U.S. economy is believed to be on the verge of a boom, with debt-to-GDP plunging, reducing the need for U.S. dollar alternatives. It's a #Trump-inspired mania.
— Peter Schiff (@PeterSchiff) November 11, 2024
Trump’s crypto promises drive Bitcoin to record-high
On Monday, Bitcoin (BTC) broke past the $89,000 mark for the first time following an intense weekend rally. The world’s most popular cryptocurrency has gained over 30% since the US presidential election. BTC hit a record high of $89,637 on Tuesday, continuing its explosive rally since Donald Trump won the election. As of writing, it is trading at $88,904.
According to CoinGlass data, crypto liquidations totaled $764.98 million in the last 24 hours, with $453.85 million in bearish bets and $311.14 million in long positions liquidated. Future premiums have also increased, with open interest for Bitcoin contracts above $90,000, nearing $2.8 billion on Deribit, a prominent derivatives exchange for crypto futures.
Trump has pledged to make the US “the crypto capital of the planet” and to replace SEC Chair Gary Gensler, who led intensive regulatory efforts under President Joe Biden’s administration.
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