The debate surrounding Bitcoin USD has intensified as economist Peter Schiff continues to label the cryptocurrency a national security threat, while macroeconomist Alex Krüger presents a contrasting view, describing Bitcoin as entering a transformative “supercycle.” Schiff has criticized government involvement with Bitcoin, claiming it misdirects resources at the expense of productive industries.
Krüger likens Bitcoin’s growth trajectory to gold’s dramatic rise in the 1970s, emphasizing its growing role in global markets.
Schiff’s Criticism: Bitcoin as a National Security Risk
Peter Schiff has increased his attacks against Bitcoin, claiming that the cryptocurrency can only become a government-backed tool that negatively affects the United States economy.
In a post on X, Schiff branded Bitcoin as being “public enemy number one.” He said while anyone is allowed to go and invest in Bitcoin, using money from the public is way out of line. He suggested that the state-accompanied Bitcoin acquisitions may interfere with efficiency-specific sectors and endanger the application of the US dollar.
In addition, his criticism also extends to the proposed U.S. Strategic Bitcoin Reserve. He urged President Joe Biden to sell the government’s seized Bitcoin to reduce the national deficit, arguing that such a move would prevent future administrations from using Bitcoin to undermine the U.S. dollar.
“The one good thing Biden can do before leaving office is sell all the bitcoin currently held by the U.S. Govt. Not only would the money raised reduce the 2024 budget deficit, but it would put an end to all the nonsense about creating a harmful ‘strategic’ Bitcoin Reserve.”
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Krüger’s Optimism: Bitcoin in a Transformative Supercycle
Unlike Schiff’s warnings, a more optimistic outlook is provided by Alex Kruger, who concluded that we are watching Bitcoin transitioning into the ‘supercycle’ phase.
In his statements regarding X, Krüger stated that currently, Bitcoin is following the same path that gold did after the abolishment of the Gold Standard by President Nixon in 1971. Gold prices, for instance, soared from $35 per ounce to $850 in 1981, a change that Krüger finds reflected in Bitcoin’s transition from a complete outlier to state supported industry.
Krüger highlighted how the crypto industry has transitioned from being barely legal to one of the most supported sectors by governments within weeks. He argued that Bitcoin’s rapid growth and institutional adoption reflect its maturing role in global markets.
While Krüger anticipates a local price peak around March 2025, he dismissed concerns about a bear market, emphasizing that the conditions for such a downturn are not currently present.
Krüger’s optimism underscores Bitcoin’s increasing acceptance, even among traditional financial institutions. He noted that broader economic factors, such as funding rates and price momentum, will play a critical role in shaping Bitcoin’s next phase.
Despite acknowledging potential volatility, Krüger remains confident in Bitcoin’s long-term growth and its potential to redefine global financial systems.
Bitcoin USD Price Analysis: Key Support and Resistance Levels
Bitcoin USD prices have been oscillating accordingly to the ongoing debate, with recent activities demonstrating increased sensitivity. As of now, Bitcoin is trading at $96,556, after dropping from an intraday high of $101,215, a close to 4.5% fall caused by some traders taking profits after crossing the psychological $100,000 level.
Nonetheless, Bitcoin still holds above key support levels, and the overall trend is still positive. The short-term support resides at $94,150, while the stronger short-term support is at the long-term moving average of $87,262. On the positive side, Bitcoin needs to climb back above $97,269, its short-term moving average to regain an upward trend, with $100,000 maintaining its importance as the resistance level.
The broader technical indicators suggest Bitcoin’s rally is intact, supported by long-term bullish momentum. However, analysts caution that increased profit-taking and market sentiment will play significant roles in determining Bitcoin’s short-term direction.
Source: https://www.thecoinrepublic.com/2024/12/10/bitcoin-debate-heats-up-schiff-labels-it-a-national-security-threat/