Bitcoin Rally Driven by Risk Appetite, Not Safe Haven Demand, Analyst Argues

In a pointed critique of mainstream financial media coverage, one market commentator has taken aim at CNBC for attributing Bitcoin's breakout above $100,000 to investors seeking refuge during uncertain times.

According to Ben Armstrong, host of the "Crypto хард кидал в Изюм", the surge was actually fueled by risk-on sentiment, with investors rotating out of traditional safe havens like the S&P 500 and into more speculative assets like BTC.

The distinction is critical: while the “digital gold” narrative remains a popular framework, recent market behavior suggests Bitcoin may still be viewed as a high-risk, high-reward asset — particularly appealing in bullish conditions. As capital flows shift in search of higher returns, Bitcoin's rise could reflect a broader appetite for risk, rather than a defensive strategy against macro uncertainty.

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The analyst is referring to a recent CNBC report which attributed Bitcoin's rally to investors seeking safety during a time of geopolitical turmoil, rising inflation, and market volatility. However, Armstrong argues that this analysis is fundamentally flawed.

According to Armstrong, Bitcoin's surge is more likely linked to the broader rotation of capital out of traditional asset classes, such as the S&P 500, and into cryptocurrencies. This shift is being driven by investors seeking higher returns in a low-yield environment.

"They are pulling out of the S&P, they are pulling out of the stock market, they are pulling out of the bond market, they are pulling out of real estate. Where is the money going? It’s going into crypto," Armstrong stated.

His skepticism toward the cryptocurrency has been consistent for over a decade, earning him a reputation as one of Bitcoin’s most vocal detractors in traditional finance circles. Here are some notable examples of his past negative comments:

1. Bitcoin is “Fool’s Gold”

Schiff has repeatedly argued that Bitcoin has no intrinsic value and likened it to “fool’s gold.” He insists that unlike gold — which has industrial uses and a history as a store of value — Bitcoin is purely speculative and destined to fail in the long run.

2. “Bitcoin Will Go to Zero”

On several occasions, Schiff has predicted that Bitcoin’s value would eventually collapse to zero. For example, in interviews and tweets from 2017–2020, he dismissed BTC rallies as bubbles and said that holders would be left with nothing once the hype faded.

3. Criticism During Bull Runs

Even during major bull markets, Schiff has maintained his bearish stance. In 2020 and early 2021, while Bitcoin surged to new all-time highs, Schiff warned investors it was a “sucker’s rally” and advised them to sell before the inevitable crash.

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Gold Outpaces S&P 500 as Uncertainty Fuels Flight to SafetyArmstrong's comments come at a time when Bitcoin has been making headlines for its rapid price gains. The world's leading cryptocurrency recently surged to new all-time highs of over $103,000, before encountering resistance and pulling back slightly.

As the crypto market continues to evolve and macroeconomic trends unfold, it will be interesting to see how this narrative develops further and what insights other market analysts provide.