Noted economist and gold advocate Peter Schiff deemed Bitcoin BTC/USD a “digital tech stock” with no earnings potential on Wednesday.
What happened: In an X post, Schiff argued that Bitcoin’s price movements are highly correlated with those of technology stocks, despite it not being an “operating business” with revenue and earnings.
“It’s also amazing how negatively correlated it is to gold, even though it’s hyped as digital gold,” Schiff said, questioning the long-touted narrative by Bitcoiners.
He called the apex cryptocurrency a “digital tech stock without even the potential of earnings.”
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Why It Matters: Bitcoin’s correlation with the Nasdaq Composite, the stock index weighted toward the technology sector, increased from 0.62 at the beginning of the year to 0.88 as of this writing, according to The Block. The correlation sharply rose in July.
Interestingly, Bitcoin’s correlation with gold also flipped from negative to positive in the last month, although year-to-date, the correlation has dropped from 0.32 to 0.15.
Disclosure: 82% of retail CFD accounts lose money
Moreover, a report by Franklin Templeton found that Bitcoin’s price correlation with the Nasdaq stock index has increased dramatically over the past three years, while ruling out a “statistically significant” association between Bitcoin and gold.
Schiff’s remarks come as technology titans Meta Platforms Inc. META and Microsoft Corp. MSFT announce earnings for the second and fourth quarters, respectively.
Visit Benzinga Edge Stock Rankings to find out how the two stocks fare on key parameters like Growth, Momentum and Value.
Price Action: At the time of writing, BTC was exchanging hands at $118,452, up 0.25% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the coin has gained 26.83%.
Spot gold traded at $3,295.10 per ounce as of this writing, up 24% since the beginning of the year. The Nasdaq Composite closed at 21,129.67 on Wednesday, up 9.42% year-to-date.
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