Peter Schiff weighs in from Pakinomist

Pakinomist – In a recent tweet, renowned economist and gold advocate Peter Schiff made a comparison between and traditional fiat currencies. Schiff, a well-known Bitcoin critic, highlighted a significant difference and similarity between the two, sparking reactions from the cryptocurrency community.

According to Schiff, the biggest similarity between traditional fiat currencies and Bitcoin is that both derive their market value from the faith people place in them. In response to an X user who refuted this claim by saying that “bitcoin was all proof of work”, Schiff declared Bitcoin “proof of faith”, adding that “the work does not produce anything of value. So it is proof of faith.”

Schiff went on to highlight the main difference between the two asset classes, indirectly highlighting Bitcoin’s ability to create wealth, saying: “The biggest difference is that no one expects to get rich with cash. That’s why confidence in Bitcoin can be more easily lost.”

Schiff, a staunch crypto critic, continues to dismiss Bitcoin while championing gold. He has previously criticized BTC exchange-traded funds (ETFs), arguing that they undermine the decentralized nature of crypto.

Bitcoin price is preparing for bigger move

At the time of writing, BTC was up 1.04% in the last 24 hours to $105,278 after falling to lows of $101,200 amid a sell-off in the early Thursday session.

According to Glassnode, Bitcoin’s 60-day range is currently tighter than its current trading range. Historically, similar patterns have signaled volatility explosions.

In a tweet, Glassnode observed that “Bitcoin’s current 60-day price range is very tight. Historically, periods of tight price ranges often preceded increased volatility,” it wrote. Additionally, 20% of BTC supply is concentrated within ±15% of the spot price, creating the potential for increased market volatility as investor profitability shifts.

In the broader markets, investors are now anticipating the next meeting of the Federal Open Market Committee on 28-29. January, when interest rate cuts may be announced. At its December meeting, the Fed signaled two rate cuts for 2025, indicating a slow and cautious approach.

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