Prominent gold advocate Peter Schiff is advising investors to sell their Bitcoin and purchase gold as the cryptocurrency experiences significant selling pressure, erasing its gains for 2024. His comments come as market liquidations intensify and a notable performance gap widens between Bitcoin and the precious metal.

Gold Outshines Bitcoin Amid Market Turmoil

As Bitcoin’s price struggled, Schiff highlighted gold’s relative strength, noting the metal’s upward momentum while the cryptocurrency faltered. The recent downturn in the crypto market has been intensified by substantial outflows from spot Bitcoin Exchange-Traded Funds (ETFs).

Schiff pointed out that Bitcoin has fallen approximately 26% from its recent all-time high. He emphasized that the decline is even more pronounced when measured against gold, claiming a 39% drop in gold terms. “Sell Bitcoin now and buy gold before you get mauled,” Schiff stated in a social media post, framing the situation as a severe bear market for the digital asset relative to gold.

Market observers note a growing divergence between the two assets, particularly following a significant crypto market liquidation event on October 10. Over the last month, gold has outperformed Bitcoin by about 25%, breaking a long-standing positive correlation. Analysts suggest this shift is largely driven by high leverage and cascading liquidations within the crypto market.

Conflicting Signals from Market Analysts and Investors

The bearish sentiment is shared by some technical analysts. Ali Martinez reported that Bitcoin has broken below a key trading channel, which could increase the likelihood of a further price decline toward the $53,500 level. Martinez also highlighted mounting selling pressure, noting that over 10,000 BTC, valued at nearly $1 billion, were moved to crypto exchanges in just 72 hours, signaling weakening investor confidence.

Despite the short-term pessimism, some well-known investors see the downturn as a buying opportunity. Robert Kiyosaki announced his intention to acquire more Bitcoin once the current sell-off subsides. Similarly, MicroStrategy’s Michael Saylor appeared to dismiss any speculation that his firm was selling its holdings, hinting at potential new purchases and signaling continued confidence from major market players.

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