Bitcoin Peaks: Is it Premature to Call it a ‘Major Top’ as Peter Schiff Does?

Key Points

• Bitcoin’s failure to rise against gold for over three years suggests it has hit a ‘major top’, according to critic Peter Schiff.
• Despite Middle East tensions and a dip in value, 30 key market peak indicators show no signs of overheating, suggesting Bitcoin remains a solid investment.

Bitcoin [BTC] saw a brief dip to $102K on June 12th following an attack by Israel on Iran. This led to fears of a potential escalation across the region, causing markets to plummet and BTC’s weekly losses to extend to 7%, mirroring a similar dump in the U.S. stock market.

Bitcoin vs. Gold

In contrast to the market downturn, gold saw a significant increase, reaching $3.4K. This divergence led long-time critic, Peter Schiff, to suggest that BTC had reached a ‘major top’. He stated that Bitcoin is now more than 15% below its November 2021 peak when priced in gold.

Schiff also highlighted that despite government backing and corporate treasury interest, BTC has failed to rise against gold for over three years. This, he suggested, indicates that the ‘bubble has peaked’.

Market Indicators

Despite Schiff’s claims, a composite of market cycle peak indicators, including ETF flows and valuation models like the MVRV Z-Score, showed no sign of a likely peak. CoinGlass’ Bull Market Peak Indicators also revealed that none of the 30 metrics showed overheated signs, suggesting that current levels were a solid ‘HOLD’ despite the Middle East tensions.

Investor Ken Teng, also known as Chicken Genius, claimed that the U.S. will likely print more money to try to salvage its debt situation, which will likely rally BTC higher. This theory is commonly referred to as ‘nothing stops this train’ in Crypto Twitter.

Glassnode supported Teng’s outlook, emphasizing that the recent dip didn’t break key short-term supports, including the short-term holder (STH) realized price at $97K. They stated, “Despite the recent pullback, BTC remains above most major short-term cost basis levels…As most short-term holders are still in profit, the top-heavy risk seems limited.”