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Peter Schiff’s Unexpected Backing of Bitcoin over Ethereum
Peter Schiff, known for his long-standing criticism of Bitcoin, recently surprised the cryptocurrency community by suggesting that Bitcoin may be a more prudent investment than Ethereum. This endorsement came via a tweet that garnered over two million views, where he stated, "selling Ether and buying Bitcoin with the proceeds is a better trade than holding Ether".
Schiff attributed his change of heart to technical analysis rather than personal conviction, claiming that Ethereum faces greater competition in the crypto market. He mentioned that while Ethereum has made notable gains, it is not as unique in its narrative compared to Bitcoin.
Ethereum’s Phenomenal Surge
In stark contrast to Schiff’s statements, Ethereum’s performance has been impressive. Over the past month, the price of Ether surged by 66%, reaching US$3,732 (approximately AU$5,683), marking its highest point in 2025. This rally has been coupled with a significant influx of funds into Ethereum-focused exchange-traded funds (ETFs), with over US$2.1 billion (AU$3.2 billion) flowing in last week alone. This surge of investment highlights a strong bullish sentiment surrounding Ethereum, even as Bitcoin ETFs experienced outflows amounting to US$131 million (AU$200 million).
Market Dynamics
The current climate in the cryptocurrency market is peculiar, with Schiff’s shift and Ethereum’s remarkable performance providing a gripping narrative. Investors are actively weighing Ethereum’s recent success against Schiff’s assertions that it might be time to pivot towards Bitcoin. Analysts, including Bitwise’s CIO Matt Hougan, maintain that the bullish trend for Ethereum is likely to continue.
Validators Take Profits
Interestingly, Ethereum’s validator exit queue is now at its highest level in over a year, with nearly 519,000 ETH valued at approximately US$1.92 billion (AU$2.92 billion) waiting to leave the network. The backlog reflects the limitations of the proof-of-stake (PoS) system regarding the speed at which stakers can exit. This development indicates a trend of profit-taking following Ethereum’s extraordinary rally, as both retail and institutional investors look to secure their gains.
Conclusion
The evolving narratives surrounding Bitcoin and Ethereum illustrate the volatile nature of the cryptocurrency market. While Schiff’s endorsement of Bitcoin over Ethereum adds a diverse perspective to the discussion, Ethereum’s continued upward momentum coupled with significant ETF inflows demonstrates its resilience and appeal to investors. As the cryptocurrency landscape shifts, both assets will likely remain focal points for traders and enthusiasts alike.
