Peter Schiff Admitted He Was Wrong About Bitcoin: Report

Peter Schiff admitted he was wrong about Bitcoin but the gold bug still believes BTC’s drop to $10K predicts a bear market ahead. In our Bitcoin news today, we are reading more about his current stance on the number one cryptocurrency.

The popular gold bug Peter Schiff admitted he was wrong about bitcoin after the spoke out against it for many years. He now believes that there’s some flaw in his predictions after acknowledging the coin didn’t collapse when the gold increased to a new all-time high last month. In a twitter conversation with Tyler Winklevoss, Schiff discussed with the Gemini co-founder regarding Bitcoin’s rise to a yearly high of more than $12,000 and its dip under $10,000 over the past week. While Winklevoss predicted that the digital assets’ baseline for the future dips will be set at $10,000, Schiff is still bearish starting that Bitcoin will be consolidating before the crash:

 “The more the 10K support level is tested, the weaker it gets.”

However, the Twitter user Sharkbyt was not willing to let Schiff’s words to slide and posted a screenshot of Schiff’s predictions made on July 5 that the price of BTC will drop as gold surged:

 “I was right on gold, but wrong on Bitcoin. The latter did manage to get through resistance and rally up to $12K, thanks in large part to a ride on gold’s coattails and a massive TV advertising buy by Grayscale.”

According to Skew analytics, the one-month correlation between BTC and Gold reached a record high of $68% in August and at the time of writing, the price of gold is sitting at $1,934 per ounce having dropped by 7.1% since it reached its all-time high of $2,089. However, Bitcoin is now valued at $10,251 and dropped by 15% since it first increased above $12,000 on August 2. The correlation between the two assets remained near 0.20% for the past two weeks and dropped briefly to 2.6% on September 2.

Bitcoin is now no longer heavily related to gold but the crypto-asset could still be set to become digital gold in 2020 considering the previous price correlations and trends in the futures markets. Skew reported that gold has a 27.22% year to date return while BTC has 42.36%.