'Sell Bitcoin, Buy Gold,' Says Peter Schiff Despite Rally to $71,000

Peter Schiff on Thursday called Bitcoin’s (CRYPTO: BTC) surge above $72,000 a fakeout, arguing gold is the real trade while Bitcoin surged 10% against gold’s 4% over the past 24 hours.

What Did Peter Schiff Say About Bitcoin’s Rally Above $72,000?

Schiff posted on X that the Treasury buyback announcement caught markets by surprise and that Bitcoin investors who expected easy money to lift both gold and Bitcoin are only half right. 

“Sell Bitcoin, buy gold,” he wrote. His argument is that the return to loose monetary conditions is a gold story, not a Bitcoin story, and that Bitcoin’s rally above $72,000 is a mechanical short squeeze rather than a genuine demand-driven breakout.

Why the BTC/Gold Ratio Tells a Different Stor

Analyst Adam Livingston noted on X Thursday that Bitcoin priced in gold, as measured by SPDR Gold Shares (NASDAQ:GLD) is up 34.8% since its Feb. 28 low. 

A return to the October ratio from that level would imply roughly 96% upside, pointing toward $140,000 Bitcoin. “I wouldn’t want my money in anything else right now,” Livingston wrote.

What Caused Bitcoin’s Breakout Above $70,000?

According to CoinDesk, Bitcoin spent six weeks compressed between $62,000 and $66,900 with volatility at multi-year lows, a setup that encouraged traders to pile into short positions fading every approach to the range high. That left a thick band of short liquidation levels between $65,000 and $67,000.