Long-term Bitcoin critic Peter Schiff has predicted that Europeans will continue to lose interest in Bitcoin, citing its price difference as proof.
Bitcoin is down slightly in the past 24 hours against the dollar, following a period of intense upward price action that saw it reach an intraday high of $108,310 today. While the asset has shown bullish momentum, particularly from a scare over the weekend that saw it drop below $100,000, some still believe BTC remains a bubble that will burst soon.
Bitcoin’s Demand Would Decline in Europe: Schiff
Particularly, in a tweet today, staunch critic Peter Schiff made another claim about Bitcoin and its long-term trajectory, especially outside the United States. He argued that the demand for the pioneering cryptocurrency would continue to decline in Europe alongside the demand for the US dollar.
For context, he cited that while Bitcoin is only 4% away from its all-time high of $112,000 attained on May 22, it is 14% away from its peak of €105,951 against the euro. Interestingly, BTC reached this peak on January 20, failing to find much joy against the euro as with the dollar, where it has hit two new ATHs since Inauguration Day.
Meanwhile, Schiff claims that this disparity is due to Bitcoin’s lesser popularity in Europe compared to the United States. While the European Union debuted a crypto market framework before the US, the latter still has more users and processes more crypto-related transactions than the former.
Notably, the Bitcoin critic expects this trend to continue. He emphasized that the global de-dollarization trend is ongoing, and Bitcoin’s adoption is likely to decline in Europe alongside the dollar.
“European demand for both will keep falling,” Schiff added.
Mere Forex Difference?
Meanwhile, Schiff’s comments drew the attention of the crypto community, with a reaction emphasizing that the acclaimed lack of interest is merely a forex disparity. Salomondrin highlighted that this was due to the US dollar index (DXY) dropping, which led to other cryptocurrencies appreciating against the USD.
For perspective, Donald Trump’s tariff war led many institutions to lose interest in the US dollar as they sought alternative means of cross-border trading. The DXY crashed on this development and remains in a downtrend, dropping to 97 today.
As a result, during the period, Bitcoin surged against the US dollar to new highs but failed to replicate a similar feat against the more stable euro. As a result, Schiff’s claim that the price difference suggested a lack of interest lacked logic.
Moreover, Salomondrin stated that a similar price difference is seen in gold’s price against the dollar and the euro. Gold sells at $2,880 per ounce against the euro and $3,300 against the dollar; hence, Schiff’s comments are based on relative all-time highs rather than Bitcoin’s real value.
Remarkably, top market watchers have tipped Bitcoin to continue growing both in price and adoption. Recall that Tim Draper tipped BTC to increase infinitely against the US dollar, with Coinbase CEO Brian Armstrong arguing that nations will hold more Bitcoin than gold in the future.
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