Gold advocate Peter Schiff is once again challenging Bitcoin's reputation as a hedge against inflation.

Despite Bitcoin's recent 14% price surge in April, Schiff says it still behaves more like a tech stock than a store of value.

Gold advocate Peter Schiff is once again challenging Bitcoin’s reputation as a hedge against inflation.

Despite Bitcoin’s recent 14% price surge in April, Schiff says it still behaves more like a tech stock than a store of value.

“Bitcoin has not decoupled from the NASDAQ,” he said, urging investors to focus on gold for long-term purchasing power preservation.

Schiff believes Bitcoin’s rally is driven by speculation and macroeconomic news, not intrinsic value. He warns that its volatility makes it a poor choice for hedging during economic uncertainty.

If it’s clear from recent price action that claims that Bitcoin has decoupled from the NASDAQ and now trades more like gold are false. If you're worried about inflation and want to protect your purchasing power buy gold. If you want to bet on the NASDAQ just buy tech stocks.

Meanwhile, Senator Cynthia Lummis has taken the opposite stance. She penned a piece for the Hill, where she backed the BITCOIN Act, claiming Bitcoin adoption could help solve the U.S. national debt crisis, now over $36 trillion.

The company MicroStrategy is also standing by its support for Bitcoin despite reporting a Q1 2023 financial loss of $16.49 per share from a $5.9 billion Bitcoin writedown.

Michael Saylor stated his plan to accumulate an additional $84 billion worth of Bitcoin because he believes in its enduring value.

Market momentum has also been supporting Bitcoin. April’s inflation data showed a drop to 2.3%, boosting hopes for interest rate cuts. Donald Trump has also added pressure on the Fed to ease monetary policy.

According to Fidelity’s Jurrien Timmer Bitcoin functions as both a “hard money” and a “risk asset.” The current better risk-adjusted returns from gold do not prevent Bitcoin from becoming profitable when liquidity conditions improve.

The data from Glassnode indicates that long-term holders increased their BTC holdings by 254,000 units as they demonstrate their confidence in the market but analysts warn that the price approaching $99,900 could lead to selling pressure.