- Bitcoin breaks new highs, but Silver’s steady rise attracts investors, citing a safe bet.
- Silver hits highest level since 2011, trailing Bitcoin’s rally but with less risk.
- Peter Schiff urges Bitcoin investors to shift to Silver, calling it a safer hedge with upside.
As Bitcoin makes another remarkable feat of pushing to $118K, a debate has re-emerged among market observers over the merits of traditional assets with digital ones. With the king of crypto steadily progressing, a metal had also caught the attention of investors, but it is not gold this time.
Silver, the often overlooked precious metal, had hit its highest, prompting analysts to suggest it’s time for investors to rebalance. Sharing tweets on X for two consecutive days, Peter Schiff stated that BTC investors could sell some of the asset and buy the metal. Following the thread on the following day, Schiff slammed investors for ignoring the price breakout of Silver.
Notably, the price of Silver had gained around 4.3% over the past five days, reaching about $38.38 per ounce on Saturday during the early European trading session. Meanwhile, Bitcoin gained around 9% over the past week, moving to $118K. While Bitcoin entered its price discovery phase earlier this week, Silver is yet to retest its ATH of nearly 50% per ounce set in 2011.
According to Schiff, the metal has a lower risk of crashing, and this could be essential if BTC investors should hedge their portfolios using the precious metal. He further emphasized the upside of Silver and its limited risks, especially when compared to crypto’s cycles.
Is Silver a Safe Haven than Bitcoin?
With Gold already in the macro price discovery phase, some economists may argue against comparing BTC with Silver. However, amid its diverse applications and waning demand, Silver has a near-infinite supply, while Bitcoin has a predetermined supply of 21 million coins, which are controlled through periodic difficulty adjustments.
According to Statista data, the global supply of silver stands at around 1 billion ounces, growing steadily since 2010, while Bitcoin’s annual inflation has exponentially declined through the halving events to below 2% at the time of this writing.
Market Picture
With the U.S. leading efforts in crypto regulation, more traditional financial institutions have adopted the asset as observed through the U.S. spot BTC ETFs. Dubbed as ‘digital gold’ among institutional investors, including Federal Reserve and top-tier traditional financial institutions. the U.S. spot Bitcoin ETFs have recorded the fastest growth rate, reaching total net assets of above $150 billion according to data from Sosovalue.
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