- Bitcoin lags behind stocks and gold, raising questions on its current market appeal.
- Historic low volatility hints at a potential sharp Bitcoin move soon.
- Four-year cycle suggests current decline may precede a macro peak in 2025.
Bitcoin’s recent pullback has reignited the long-running debate over its true value and long-term sustainability. While major assets such as the NASDAQ and gold have surged 18% and 42% above their January highs, Bitcoin has slipped below its own.
The decline comes amid renewed criticism from gold advocate Peter Schiff, who argues that Bitcoin’s value depends solely on market momentum rather than any inherent worth. Despite ongoing institutional attention and political headlines since Trump’s inauguration, Bitcoin’s price performance remains muted compared to traditional markets.
Market Underperformance Raises Questions
Bitcoin’s price is currently $107,871, reflecting a 2.2% drop over the past 24 hours and a 6.22% decline in the past week. Its market capitalization stands at $2.15 trillion, with trading volumes exceeding $48 billion.
Schiff earlier emphasized that Bitcoin’s stagnation, even as both risk-on assets like stocks and risk-off assets like gold rise, signals a fading belief among investors. He has long maintained that Bitcoin lacks intrinsic value, arguing that its demand relies on continuous speculation rather than fundamental utility.
However, supporters counter that Bitcoin’s decentralized structure and capped supply of 21 million coins serve as digital equivalents to gold’s scarcity. They suggest that the current weakness reflects market consolidation ahead of a potential breakout rather than a loss of faith.
Historic Lows in Volatility Indicate Pending Move
According to analyst Crypto Rover, Bitcoin’s volatility has fallen to its lowest level in more than a decade. The 180-day volatility index has approached the 0.02 mark, a level last seen before major rallies in 2015, 2019, and 2020.
Rover noted that such quiet phases often precede significant market shifts. Hence, the ongoing compression in volatility could lead to sharp movements once momentum returns.
Liquidity has also thinned in derivatives markets, suggesting that traders are waiting for a clear directional signal. Consequently, analysts anticipate that Bitcoin could soon experience a major move as volatility compresses further.
Related: Bitcoin Price Prediction: BTC Awaits Breakout From $109K–$112K Range As Traders Eye $114K Target
Four-Year Cycle Still Intact, Says Analyst
Crypto Dubzy believes Bitcoin’s current pattern still aligns with its historical four-year cycle. The model has accurately mapped previous peaks in 2013, 2017, and 2021.
Since October, when the cycle predicted a potential top, Bitcoin has gradually trended lower from the $110,000 level. This movement mirrors earlier pre-top corrections that typically occur before a macro peak forms.
Related: Fakeouts: Bitcoin’s Systematic Departure From Historical Patterns
If the pattern holds, Dubzy expects a possible market top within the 2025 window, followed by a year-long corrective phase. Hence, despite Schiff’s skepticism, some analysts maintain that Bitcoin’s current weakness fits within its long-term cyclical rhythm rather than signaling structural decline.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/schiff-renews-criticism-as-bitcoin-underperforms-gold-and-nasdaq/
