Schiff: Bitcoin Crash Was a 'Warning'

Peter Schiff, a prominent financial commentator, claims that the Friday Bitcoin flash crash was a “warning” instead of merely a “buying opportunity.”

“Crypto buyers are in for a rude awakening and will soon learn a very valuable but expensive lesson,” Schiff said.

Bitcoin’s uncertain recovery

As reported by U.Today, Bitcoin and U.S. equities plunged sharply lower on Friday due to rapidly worsening trade tensions between the US and China.

Altcoins got absolutely clobbered after the U.S. announced draconian 100% tariffs on Chinese goods. The market witnessed $19 billion worth of liquidations, and Fundstrat’s Tom Lee argues that this figure might actually be understated.

Cryptocurrencies then saw a rather sharp recovery after the White House seemingly opened the door to a trade deal with China.

However, they have erased some of these gains once again as trade tensions between the two superpowers continue to simmer.

Bitcoin dipped to an intraday low of $113,030 earlier today, according to CoinGecko data.

Both stocks and crypto remain extremely sensitive to the latest headlines.

Gold’s new peak

In the meantime, the price of gold recently reached a new peak above the $4,100 level.

According to Schiff, gold’s massive surge is exposing the “fiction” that Bitcoin is actually “digital gold.”

“The bottom can drop out of Bitcoin at any time,” the gold bug warned.

The odds of Bitcoin outperforming Bitcoin this year appear to be extremely slim given that “Uptober” has so far been extremely lackluster.