Popular Economist and Crypto Critic Predicts Gold Surge, Remains Skeptical of Bitcoin

Peter Schiff, a well-known economist and Bitcoin critic, has predicted that gold will outperform BTC amidst shifting market dynamics.

His statements follow the release of U.S. Consumer Price Index (CPI) data showing a slowdown, prompting speculation about potential Federal Reserve rate cuts in 2024.

Schiff emphasized gold’s robust response to the CPI figures, noting a price surge of over $30 to trade above $2,400. He criticized the Fed’s possible interest rate cuts as a measure to mask underlying inflation concerns, foreseeing higher inflation ahead.

Regarding Bitcoin, Schiff expressed skepticism despite recent price gains, suggesting it won’t sustain its current levels. He highlighted the outperformance of gold stocks, such as the VanEck Vectors Gold Miners ETF (GDX) and VanEck Vectors Junior Gold Miners ETF (GDXJ), both reaching new highs and indicating a strong bullish trend for gold.

Meanwhile, recent CPI data showed a slight decrease in inflation to 3% year-over-year in June, boosting market optimism. This has led to increased speculation on potential Fed rate cuts, with the CME FedWatch Tool now suggesting an 81% chance of a 25 basis point cut in September.

Market expectations for a third rate cut in 2024 have also risen significantly, driven by positive sentiment following the CPI release and supported by data from Kalshi.