Bitcoin Isn't Booming—The Dollar’s Just Weakening, Says Peter Schiff

Key Insights

• Recently, financial analyst Peter Schiff has criticized investors, stating that Bitcoin isn't "skyrocketing" as many people think.
• Schiff claims that Bitcoin is only profiting from the decline in confidence in the US dollar.
• Altcoins are doing well, with Ethereum dominating the mainstream cryptocurrency market, even though Bitcoin still makes the most news.
• All things considered, as Bitcoin approaches new records, all eyes will be on whale activity, regulatory changes, and the general market sentiment.

Bitcoin has once again taken center stage in the crypto market and is trading comfortably above the $100,000 mark.

Bitcoin is now inching towards new all-time highs, and analysts generally expect the upward trend to continue.

However, not everyone is convinced this rally is worth the hype.

Financial commentator Peter Schiff has thrown cold water on investors recently, after warning that Bitcoin isn’t “skyrocketing” as many believe.

Here’s the current state of Bitcoin and what’s really going on behind the scenes.

Peter Schiff Says "Not So Fast"

Peter Schiff, a longtime Bitcoin skeptic and gold advocate, recently spoke about the surge in BTC’s price.

Despite Bitcoin reaching as high as $104,836 on Tuesday, Schiff insists the asset is not “skyrocketing.”

His comments came amid comments from critics, who accused him of remaining unusually quiet during the recent rally.

According to Schiff, Bitcoin is merely benefiting from the weakening trust in the U.S. dollar.

He went further to cite the strong rise in the yield of 10-year U.S. Treasury notes (which is now is near 4.5%).

Because of this, Schiff warned that de-dollarization could have “profound consequences” for global markets.

Still, Bitcoin continues to show strength and is holding firm above the $100,000 mark. The cryptocurrency briefly touched $105,000 earlier this week and then settled around $104,000 in the face of minor corrections.

According to CoinMarketCap, the cryptocurrency is now trading at $102,065.78 by press time.

The rally also follows the release of some favorable inflation data in the U.S., which showed April's Consumer Price Index (CPI) cooling more than expected.

The news has helped to lift the sentiment across the financial markets, with the Nasdaq and S&P 500 both posting gains.

Altcoins Join the Rally

While Bitcoin continues to dominate headlines, altcoins are also performing well. According to CoinMarketCap, Ethereum is currently leading the altcoin market with an ongoing 5% increase over the last 24 hours before writing.

Governance tokens from restaking and DeFi protocols like Eigenlayer and EtherFi saw even stronger daily rises, with more than 20–30% in increase.

Bitcoin’s recent rally now shows that it is less than 5% from its recent all time high.

However, analysts believe that the market is now entering a phase of short-term consolidation.

So far, Bitcoin appears to be facing resistance somewhere around the $106,000 zone, with the $98,000 zone offering the strongest support.

PolyMarket forecasts also show that Bitcoin will hit the $130,000 high at least before the year ends.

What Could Be Coming Next For Bitcoin?

So far, Sovereign interest, ETF expansion and the improving regulatory clarity are all great signs that Bitcoin is becoming more and more of a legitimate global macro reserve asset.

While critics like Peter Schiff have “reasonable” explanations for why Bitcoin may not really be rallying, the cryptocurrency’s ability to hold above $100,000 while attracting growing institutional attention is a sign of increasing maturity.

All of the positive factors, like favorable inflation data and political support from figures like Donald Trump, are adding fuel to an already strong rally.

While the short term might involve major pullbacks, the long-term trend appears to be on track to continue.

In all, as Bitcoin inches closer to breaking new records, all eyes will remain on whale activity, regulatory developments and the general sentiment of the market.

For now, the bulls seem to be firmly in control.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.