Peter Schiff, a well-known critic of Bitcoin, is once again sounding the alarm, claiming that the digital asset is in a bear market. Schiff notes that Bitcoin has underperformed dramatically when compared to gold, noting that since its peak almost three years ago, the price of the cryptocurrency has dropped by roughly 40%. 

Schiff gives HODLers a direct message: Bitcoin's ongoing difficulties may indicate that investors are failing to acknowledge the realities of the market. Schiff contends that although Bitcoin is presently holding above the crucial $60,000 support level, this is only a temporary state of affairs. 

Schiff claims that the weakness of Bitcoin in comparison to gold is becoming more obvious as long as global macroeconomic conditions continue to place a significant burden on risk assets like Bitcoin. However, information gathered by Glassnode offers a more complex picture of the recent behavior of the Bitcoin market. 

About 4-5% of all net capital inflows into Bitcoin since the beginning of January can be linked to U.S. spot ETFs. Given that the cost basis of these ETFs varies from $54,900 to $59,100, many institutional investors who made their initial investment in these funds are now getting close to the break-even psychological point. 

There is a chance that investors looking to cut losses will start to sell Bitcoin if it falls below these levels. This paints a rather fragile picture for Bitcoin. Schiff is advising investors to reevaluate their bullish position even though the $60,000 support level has so far held firm. The larger trend is still unclear. 

The pivotal points to keep an eye on are $59,000 below and $64,000 above. Bitcoin may enter even more bearish territory if it breaks below $59,000, but a rise above $64,000 might rekindle optimism for a wider rebound. As the saying goes, time is the best tool to determine who needs you the most, and only time will tell if anyone truly needs Bitcoin.