Economist Peter Schiff observed on Tuesday that hopes for an Iran peace deal significantly boosted risk assets and stocks, yet Bitcoin (CRYPTO: BTC) showed minimal gains.
‘The Bitcoin Party Is Over’
Schiff said on X that the ongoing “peace-inspired mega-rally” barely moved Bitcoin, while the stock market surged.
He interpreted the relative stagnation as a warning sign, saying, “That doesn’t bode well for Bitcoin’s prospects during the next risk-asset selloff. The Bitcoin party is over.”
Bitcoin Lags Risk Assets
The stock market has been on a tear this week, with the Dow Jones Industrial Average and S&P 500 surging to record highs as the Trump administration signaled the U.S. and Iran could reach a peace agreement to reopen the Strait of Hormuz, following days of fighting.
As Schiff mentioned, gold mining-related stocks, such as VanEck Gold Miners ETF (NYSE: GDX), have also spiked. Bitcoin, as shown, has failed to keep pace with the rally.
| Asset | Gains Since Week Began +/- |
|---|---|
| Nasdaq Composite | +4.77% |
| Dow Jones Industrial Average | +3.05% |
| VanEck Gold Miners ETF | +5.155% |
| Bitcoin | +1.10% |
The Bull and the Bear Case
That said, all the stagnation could disappear sooner than expected.
Ali Martinez, popular cryptocurrency chartist and trader, identified $64,300 as a critical level for BTC’s bullish confirmation, a break above which could open the door to $66,500.
The downside scenario is that the CLARITY Act is delayed and fails to pass this week in the Senate. The long-awaited cryptocurrency legislation aims to establish clear rules for the industry, and a delay could potentially cap Bitcoin’s upside.
Price Action: At the time of writing, BTC was exchanging hands at $64,134.55, up 0.28% over the last 24 hours, according to data from Benzinga Pro.
Photo courtesy: Shutterstock
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