Bitcoin Struggles as Gold and Silver Shine: Is the Crypto King’s Reign Over?

The start of the second quarter of 2024 has not been favorable for Bitcoin (BTC) bulls, as the world’s largest cryptocurrency by market capitalization has experienced a 10% decline since its mid-March record high of $73,700. This translates to a 7% drop in Q2, with BTC barely holding on to the $66,000 resitance level at press time.

Peter Schiff, a well-known Bitcoin opponent and financial commentator, has taken the opportunity to criticize the crypto asset’s constrained performance while praising the performance of gold and silver.

So far in Q2 2024, here are the results: Silver up 8.7%, Gold up 3.4%, Bitcoin down 7%,” Schiff stated, adding, “The results speak for themselves.

The recent stronger inflation data has unsettled interest rate traders, as the odds of the Federal Reserve cutting rates in June have diminished. 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 down 1.34% on the weekly front.

Interestingly, as Schiff noted, silver and gold have seen impressive upsides amidst the macro headwinds. Schiff even encouraged his followers to take advantage of the BTC slump and invest in gold and silver, stating,

Attention Bitcoin HODLers. This may be your last chance to sell your #Bitcoin and buy some gold and silver at favorable prices.

However, some users have called out Schiff’s statements, with one user noting,

LOL, 3 days into the quarter, let’s check back at the end.

Schiff confidently responded, stating that Bitcoin would be worse off than gold and silver, even at the end of Q2.

It is important to note that macro headwinds are largely at play for gold’s rally, as pointed out by another user, who stated,

The fact that bonds are selling off while gold just moved 15% higher is telling you absolutely everything you need to know about macro right now.

While it may be too early to dismiss BTC’s performance as dismal, the persistence of macro headwinds throughout Q2 could equally affect the cryptocurrency’s upside potential.