Bitcoin's "Digital Gold" Status Is Being Increasingly Questioned

This time, he claimed that Bitcoin's supposed status as “digital gold” is being increasingly questioned, particularly as inflation concerns and fears of stagflation grow.

Prominent economist and persistent Bitcoin critic Peter Schiff has once again trained his sights on the leading cryptocurrency. This time, he claimed that the narrative around Bitcoin being “digital gold” is crumbling as inflation concerns and fears of stagflation escalate.

Rising Tariffs Put Further Pressure on Financial Markets

Pointing to the slowing growth of Bitcoin, Schiff said on social media that the narrative is shifting as the apex coin faces difficulties, especially with inflation continuing to climb. The economist also highlighted the uncertainty surrounding tariffs, which he believes is putting further pressure on financial markets.

However, Schiff took the opportunity to highlight the resilience of gold, contrasting it with Bitcoin’s struggles. He noted that while Bitcoin is sliding further, leading it to post new lows, gold is busy reaching new record highs.

In a pessimistic outlook, Schiff said that the U.S. government is quietly selling its Bitcoin holdings. In a previous post, Schiff referred to the Strategic Bitcoin Reserve as a “crypto scam.” He accused former President Trump of trying to deceive Americans with Bitcoin and other crypto ventures.

"I know what they're thinking. They're thinking, 'Oh, we'll create a Bitcoin reserve, and then we'll put all this money into Bitcoin.' But it's not working out that way. They're having to sell Bitcoin to try to raise cash to fund the government programs and pay down the national debt," claimed Schiff.

Despite this, some crypto analysts believe that Bitcoin could be due for a price rebound soon. According to data from crypto derivatives tracking platform DeepMind Quantitative, the sell-side ratio for BTC has dropped sharply.

suggesting that a rebound could be in sight.

Highlighting that a strong sell-side variance signals a strong directional move, usually down, while a low variance indicates a lack of urgency to sell, which is linked to price lows and a potential upcoming directional change, the analyst stated that historically, major price recoveries have been preceded by a drop in the sell-side variance.

In addition, long-term Bitcoin holders continue to accumulate, with large transactions occurring despite the current market downturn. For instance, MicroStrategy, led by Michael Saylor, recently added nearly 7,000 BTC to its holdings, which started around $78,000. This move, which was disclosed in a Form 8K filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday, signaled institutional confidence in Bitcoin's future potential at lower price levels.