- Stocks and Bitcoin hit record highs
- “Major policy mistake”
Echelon Wealth Partners co-founder Peter Schiff has taken to the X social media network to taunt Bitcoiners, claiming that both risk-tolerant and risk-averse investors have sold the leading cryptocurrency by market capitalization.
“Does this worry Bitcoiners?” Schiff asked his followers with an apparent feeling of smugness and schadenfreude.
Stocks and Bitcoin hit record highs
Schiff has noted that both stocks and Bitcoin recently hit new record highs.
The tech-heavy Nasdaq Composite index hit yet another all-time peak last week ahead of the Federal Reserve’s extremely likely rate cut.
However, Bitcoin failed to rally in tandem with stocks, which is rather uncharacteristic of the leading cryptocurrency by market capitalization. In fact, the correlation between Bitcoin and the Nasdaq recently dropped to its lowest level since September 2024.
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Meanwhile, gold also recently notched a string of new record highs, surging above the $3,600 level for the first time amid global economic uncertainty.
On the other hand, Bitcoin is still down by 6.2% from its record high of $124,128, which was logged on Aug. 14.
Schiff claims that it is time for Bitcoiners to “change horses” now that Bitcoin is lagging behind both gold and stocks.
“Major policy mistake”
At the same time, Schiff is convinced that the Federal Reserve is on the cusp of making a “major” policy mistake by slashing interest rates into rising inflation.
According to Polymarket bettors, there is a 92% chance of the Fed implementing the very first rate cut since December 2024.
However, Schiff believes that the Fed actually needs to implement another rate hike since it has been “too loose.”