BTC USD today falls to $88,000, while gold and silver soar – here's why Peter Schiff blames Wall Street for Bitcoin price crash

BTC USD Bitcoin price crash today: Bitcoin (BTC) is facing renewed pressure as its price dropped to $88,959.08 on Friday. Economist and gold advocate Peter Schiff criticized its recent performance, blaming the growing involvement of Wall Street for the cryptocurrency’s struggles. Schiff’s comments come as gold and silver soar to record highs, drawing a stark contrast between traditional precious metals and Bitcoin.

BTC USD Price Today Drops: Peter Schiff Blames Wall Street Adoption for Bitcoin’s Weak Performance

Schiff, a long-time Bitcoin skeptic, noted that the cryptocurrency performed best before institutional investors became heavily involved. He wrote on social media X post that, "Bitcoin was the best performing asset during a time period when hardly anyone owned it. But ever since Wall Street embraced it and most people bought it, it's been one of the worst performing assets."

Bitcoin USD Price Down More Than 50% Against Gold Since 2021 Peak

The gold advocate also highlighted Bitcoin’s recent weakness relative to precious metals in another X post. He said, "Since its peak in November 2021 Bitcoin is now down over 50% priced in gold. Let that sink in."

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Precious Metals Outperform Crypto as Silver Price Nears $100

Schiff pointed out that,"Silver is above $98, trading at $98.35. Amazing that it's less than $2 away from $100. It's up over 35% so far this year and there's still over a week left in January!"

Comparisons of Bitcoin’s Weakness to 2022 Bear Market: BTC USD Price Lost Over 60% During 2022 Sell-Off

Some market analysts have drawn comparisons between Bitcoin’s current performance and the 2022 bear market. At that time, tightening monetary policy, rising inflation, and declining liquidity triggered a major crypto sell-off, as per a report. Bitcoin lost more than 60% of its value as central banks raised interest rates aggressively, leading to widespread liquidations and the collapse of several major crypto firms, as per a CCN report.

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Crypto Analysts Reject Comparisons to 2022 Sell-Off

However, other analysts caution against making direct comparisons. Crypto commentator Garret Bullish noted that while short-term price patterns may appear similar, the long-term context is very different. He wrote in an X post, “Yes, short-term price patterns might look somewhat similar. But when you look at the long-term picture, the comparison is completely absurd,” as quoted by CCN.

Macro Conditions Today Differ Sharply From 2022

Bullish explained that the current macroeconomic environment differs from 2022, pointing to declining inflation and renewed liquidity injections. He also emphasized the potential impact of technological developments, particularly in AI, which could lead to long-term disinflation. Historically, Bitcoin has performed better during disinflationary periods, according to Bullish.

FAQs

Why is Peter Schiff criticizing Bitcoin again?
He believes Bitcoin has underperformed since Wall Street became heavily involved.

How much has Bitcoin fallen compared to gold?
Schiff says Bitcoin is down over 50% when priced in gold since 2021.