US Today – Gold prices fell sharply yesterday as investors reacted, as expected, to the latest US inflation data, which came in below expectations.
Gold is traditionally considered a safe haven asset in times of economic volatility and tends to rise when inflation rises. However, the latest CPI data has changed market sentiment and many market participants now believe that the Federal Reserve could cut interest rates. This has made gold less attractive, leading to a sharp sell-off.
On the other hand, (BTC) and other riskier assets rose sharply in response to the same data. Cryptocurrencies are generally considered a more speculative investment and tend to perform well during periods of economic optimism.
Peter Schiff, a prominent gold advocate, said he was not satisfied with the market's reaction. He believes investors have misinterpreted inflation data, which he says has led to an unjustified sell-off in the precious metal.
However, Schiff has always said that gold is a more stable store of value than Bitcoin, which he believes is just a “bubble.”
Moreover, the crypto skeptic found reasons to rejoice, stating that the rise of BTC against the background of the metal's decline in the current conditions once again proves that cryptocurrency is the anti-gold, not gold 2.0, as many claim.
Gold or anti-gold, the cryptocurrency rally shows how the market feels right now, as investors turn their attention to assets that could benefit from potential interest rate cuts and an improving economic outlook.
This article was originally published on U.Today
