PakGazette – In a recent tweet, renowned economist and gold advocate Peter Schiff made a comparison between traditional and traditional fiat currencies. Schiff, a well-known Bitcoin critic, highlighted one main difference and similarity between the two, sparking reactions in the cryptocurrency community.
According to Schiff, the main similarity between traditional fiat currencies and Bitcoin is that they both derive their market value from the faith that people have in them. In response to an test of faith.”
Schiff went further to highlight the main difference between the two asset classes, indirectly highlighting Bitcoin’s ability to create wealth, saying: “The main difference is that no one expects to get rich with cash. That’s why trust in Bitcoin is can lose more easily.”
Schiff, a staunch critic of cryptocurrencies, continues to dismiss Bitcoin while defending gold. He previously criticized BTC exchange-traded funds (ETFs), claiming that they undermine the decentralized nature of cryptocurrencies.
Bitcoin price prepares for a major move
At the time of writing, BTC was up 1.04% over the past 24 hours to $105,278 after falling to lows of $101,200 amid a sell-off early in the session on Thursday.
According to Glassnode, Bitcoin’s 60-day range is currently tighter than its current trading range. Historically, similar patterns have signaled bursts of volatility.
In a tweet, Glassnode noted that “Bitcoin’s current 60-day price range is very tight. Historically, periods of tight price ranges often preceded increased volatility,” it wrote. Additionally, 20% of BTC supply is concentrated within ±15% of the spot price, creating the potential for amplified market volatility as investor profitability changes.
In broader markets, investors are now anticipating the upcoming Federal Open Market Committee meeting on January 28-29, when interest rate cuts may be announced. At its December meeting, the Federal Reserve signaled two rate cuts by 2025, signaling a slow and cautious approach.
