In a recent broadcast of CNBC’s Squawk Box, gold advocate Peter Schiff voiced sharp criticism towards the financial network for its perceived bias in favor of Bitcoin. Schiff highlighted that while gold and silver experienced significant gains, CNBC appeared to largely ignore these developments, choosing instead to focus extensively on Bitcoin, which has faced a recent slide in value.
On Tuesday, Schiff took to X, expressing his frustrations with CNBC’s coverage. He noted a notable surge in gold prices, which rose over $40, and a nearly $2 increase in silver. Yet, he remarked that the network had not mentioned either metal despite their outperformance relative to Bitcoin, which was slightly below its previous trading levels.
Schiff suggested that the lack of attention on gold was partly due to financial media’s limited understanding of the precious metal and the influence of advertisers. He indicated that the majority of advertisers for CNBC were crypto companies, which he believed could skew the network’s focus toward Bitcoin over gold.
In contrast to Schiff’s bearish view on Bitcoin, Tom Lee, head of research at Fundstrat Global Advisors, appeared on the same program and maintained an optimistic stance on the cryptocurrency. Acknowledging the skepticism surrounding Bitcoin, especially in light of recent price declines, Lee emphasized that the long-term outlook for Bitcoin was still positive. He pointed out factors such as profit-taking and market deleveraging events that have contributed to the current prices but noted that the fundamental narrative for crypto remains robust.
Lee emphasized that Bitcoin’s growth potential is significant, mentioning that there are currently 4 million Bitcoin wallets with $10,000 each, compared to 900 million IRA and brokerage accounts worldwide that could represent a vastly larger market. He expressed confidence that Bitcoin is positioned for major upward movement, predicting a potential rise to $250,000 in the near future.
On the other hand, Schiff has consistently cast Bitcoin as a “worthless” asset, labeling it a “Ponzi scheme.” He argued that the cryptocurrency lacks utility beyond mere transfers and criticized the speculative nature of Bitcoin trading, suggesting that it resembles gambling more than actual investing.
Amid the ongoing debate over Bitcoin, gold prices have seen a slight decline after a recent rally. Analysts suggest that the drop may be limited, as recent interest rate cuts by the U.S. Federal Reserve typically reduce the opportunity cost of holding non-yielding assets like gold. At the time of reporting, gold was trading around $4,283, a pullback from its recent highs.
Conversely, Bitcoin continued its downward trend, with analysts predicting further declines based on bearish technical indicators and broader market stress. Current analysis suggested that Bitcoin could reach a target range of $70,100 to $72,000 before any potential recovery. As it stands, Bitcoin was trading around $86,278, marking a nearly 5% decrease over the past week.
Overall, the contrasting perspectives from Schiff and Lee epitomize the ongoing divide in opinions on Bitcoin and precious metals, reflecting broader market sentiments.
