Wall Street tycoon warns Bitcoin's a 'huge bubble'

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Wall Street tycoon and gold bull Peter Schiff explains why gold prices are rising and warns that Bitcoin is a "huge bubble."

Peter Schiff, CEO and chief global strategist of Euro Pacific Asset Management, provided insights into the rise in gold prices and warned against investing in Bitcoin and spot Bitcoin exchange-traded funds (ETFs).

"The price of gold is rising because fiat currencies like the dollar, the euro, the yen are losing value," Schiff said in an interview with Fox Business on Monday. "Inflation is real. It's going to continue. Inflation is nowhere near the Fed 2% target. We are heading in the wrong direction.”

He emphasized: "The central bank is ahead of the curve. They are the main buyers of gold."

Gold has had a strong performance over the past few weeks. Last week, spot gold prices soared to $2,431.50 per ounce, setting a record high.

As a safe-haven asset, demand for gold from investors and central banks has increased amid global economic uncertainty and worsening geopolitical tensions.

Schiff went on to comment on investors selling gold to buy Bitcoin or spot Bitcoin ETFs.

He said: “A lot of Americans have been foolishly selling gold and buying these Bitcoin ETFs. Bitcoin is not going up. In fact, Bitcoin peaked at 37 ounces of gold two and a half years ago. Now it’s worth less than 27 ounces of gold. That’s a 27% decline in two and a half years. Bitcoin is going to be well below that.”

When the host suggested that Bitcoin was significantly outperforming gold, Schiff exclaimed: “Bitcoin outperforms everything, so don’t compare it to gold. It outperforms stocks, real estate, bonds and collectibles ”

He quickly clarified: "That's because it's a huge bubble."

Schiff has been critical of Bitcoin and spot Bitcoin ETFs. In February, he also warned of a possible Bitcoin ETF bubble, predicting that Bitcoin prices would plummet while gold prices soared. He also warned at the time that there could be a massive sell-off in Bitcoin, with the price expected to fall sharply.

Veteran investor Peter Brandt recently questioned Schiff’s assertion that gold would outperform Bitcoin.

He said: "Come on, Peter, look at the broader perspective. I also like gold - I hold a lot of gold - but which asset has performed better since the inception of Bitcoin?"