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Peter Schiff, economist and longtime critic of
, has characterized the recent rebound in the cryptocurrency's price as a "dead cat bounce," a temporary recovery that does not signal a sustained upward trend. The analysis comes amid a $16 billion liquidation cycle that pushed Bitcoin from a peak of $122,000 to $100,600 within hours, followed by a modest rebound above $114,000. On-chain metrics and stalled institutional ETF inflows, however, suggest the rally lacks the breadth and institutional support needed to confirm a reversal in the bearish trend [1].Schiff's critique aligns with broader market observations that Bitcoin remains down approximately 25% in gold terms since its August peak. Meanwhile, gold and silver have continued to set record highs, with gold surpassing $4,080 per ounce and silver reaching $51.60, drawing capital away from volatile crypto assets [2]. The shift in investor preference underscores a growing migration toward lower-volatility assets, particularly as geopolitical and economic uncertainties persist. Analysts note that gold's 10% gain and silver's 12% rise over the past month have reinforced its appeal as a store of value [1].

Technical indicators further support the notion of a fragile rebound. Options desks and on-chain analytics firms describe the $113,000–$115,000 range as a "holding zone" rather than a breakout threshold, signaling resistance and limited accumulation. Institutional ETF inflows, which had previously supported Bitcoin's gains, have paused, while whale activity shows reduced exposure. This dynamic contrasts sharply with the robust capital inflows into precious metals, where institutional demand remains strong [1].
Schiff's characterization of Bitcoin as "a bubble dressed up as digital gold" reflects his broader skepticism about the cryptocurrency's utility as a long-term store of value. He argues that gold's historical resilience and lack of volatility make it a superior hedge against inflation and geopolitical risk, a stance echoed by some analysts who highlight Bitcoin's 46% surge over the past month as an anomaly against gold's 3% decline . The divergence in performance metrics-gold's 2.6x increase since 2020 versus Bitcoin's 16x gain-has fueled debates about the evolving role of digital assets in diversified portfolios [4].
Market participants are closely monitoring on-chain flows, ETF activity, and options positioning to gauge whether the current rebound will hold. A resumption of institutional inflows and sustained on-chain accumulation would be critical to validate a trend reversal. However, without these signals, the $113k–$115k band is likely to remain a consolidation zone, with further declines toward $100,600 a possibility if liquidation pressures resurface [1].
The broader context of Trump-era policies, including 100% tariffs on Chinese imports, has added volatility to both crypto and traditional markets. While Bitcoin briefly rebounded above $114,000 in the aftermath of the tariff announcement, the overall market remains fragile, with over $19 billion in leveraged positions liquidated in the wake of the selloff . Analysts caution that macroeconomic factors, including the Fed's hawkish stance and potential retaliatory measures from China, will continue to influence investor sentiment .
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