The start of the second quarter of 2024 was not favorable for Bitcoin (BTC) bulls, as the world's largest cryptocurrency by market capitalization saw a 10% decline since its record high of $73,700 in mid-March. This represents a 7% decline in the second quarter, with BTC barely holding on to the $66,000 resistance level at press time.
Peter Schiff, a well-known Bitcoin opponent and financial commentator, took the opportunity to criticize the crypto asset's limited performance while praising the performance of gold and silver.
So far in the second quarter of 2024, the results are: silver up 8.7%, gold up 3.4%, Bitcoin down 7%,” Schiff explained, adding, “The results speak for themselves.”
Recent stronger inflation data has rattled interest rate traders as the likelihood of a Federal Reserve rate cut in June has decreased. This has led to dismal market performance not only for Bitcoin but also for major indices such as the S&P 500, Dow Jones and Nasdaq, with the Dow Jones losing 1.34% weekly.
Interestingly, silver and gold posted impressive upward moves despite macroeconomic headwinds, Schiff noted. Schiff even encouraged his followers to take advantage of the BTC plunge and invest in gold and silver, stating:
Bitcoin HODLers beware. This could be your last chance to sell your #Bitcoin and buy some gold and silver at cheap prices.
However, some users have dismissed Schiff's statements, with one user noting:
LOL, 3 days into the quarter, we'll check back at the end.
Schiff responded confidently, stating that Bitcoin would fare worse than gold and silver even at the end of the second quarter.
It's important to note that macroeconomic headwinds are largely playing a role in gold's rally, as another user pointed out:
The fact that bonds are selling off while gold is just up 15% tells you absolutely everything you need to know about macroeconomics right now.
While it may be too early to dismiss BTC's performance as dismal, ongoing macro headwinds in the second quarter could equally impact the cryptocurrency's upside potential.
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