Renowned gold advocate Peter Schiff has once again stirred the Bitcoin community by questioning the viability of the digital asset’s lofty $100,000 price target amidst the current market turbulence. Meanwhile, popular analyst, Mark Cullen, stated that he believes bitcoin is still on a bull run, and that the $60,000 mark is a strong resistance for the digital asset.
Digital-Asset-Related Stocks’ Plunge
Schiff, a vocal critic of Bitcoin, expressed skepticism regarding the optimistic projections, particularly in light of the emergence of spot Bitcoin Exchange-Traded Funds (ETFs) and their purported impact on demand.
In a recent post on social media platform X, Schiff highlighted the underwhelming performance of key Bitcoin-related equities, including Coinbase, MicroStrategy, Galaxy Digital, and various other related stocks.
He pointed out significant declines in the stock prices of these companies, with Coinbase down by 21%, Galaxy Digital by 26%, and MicroStrategy by 33%, along with several Bitcoin mining stocks experiencing double-digit losses. Schiff questioned:
“If Bitcoin ETFs are really going to send Bitcoin to $100K or higher, why are all the Bitcoin related equities in bear markets? “
Notably, Bitcoin and digital-asset-linked stocks have historically outperformed traditional market stocks by a substantial margin since the onset of 2024. The recent decline in these stocks coincides with the broader bearish sentiment prevailing in the bitcoin market, which analysts attribute to the impending Bitcoin halving scheduled for later this week.
Bitcoin Community’s Response
Schiff’s skepticism drew swift responses from Bitcoin proponents, who criticized his selective use of data to undermine Bitcoin’s potential. One user highlighted MicroStrategy’s remarkable year-on-year stock performance, which surged by 300%, contrary to Schiff’s narrative.
Others accused Schiff of cherry-picking data and juxtaposing bitcoin’s performance with that of gold to emphasize the growth disparity between the two assets.
While gold has reached new all-time highs in the second quarter of 2024, bitcoin’s meteoric rise during the same period has overshadowed it. Notably, Schiff’s missed opportunity to invest in bitcoin during its nascent stage in 2013, when it traded around $1,000, was brought up by Bitcoin proponents Dan Held and Willy Woo.
Mark Cullen: One More Dip
As Bitcoin grapples with a recent downturn, traders and analysts are contemplating potential price floors and the timing of market stabilization. Speculations abound regarding a possible final dip to around $59,000, as suggested by popular analyst Mark Cullen citing the Elliott Wave method.
Cullen predicts that this final downward move could occur imminently, potentially bringing bitcoin’s price action to its lowest point since late February and marking a significant drawdown of around 20% from recent all-time highs.
Additionally, other analysts, such as the well-known analyst Matthew Hyland, turned their attention to the forthcoming weekly close to gauge the sustainability of the current market retracement.
Hyland observed that BTC had breached its 10-week simple moving average (SMA), which presently stands at $64,130. “This scenario heavily relies on the outcome of the weekly candle closure,” he states while writing:
“The last time it tested it, it was a great buying opportunity and never closed below it. The close will be what matters most.”
Despite the ongoing volatility and skepticism from traditional market advocates like Schiff, the broader Bitcoin community remains resilient, navigating through market fluctuations with a keen eye on the upcoming halving and long-term growth prospects.
