Peter Schiff again criticizes Bitcoin, favors gold
Gold hits a record high of $2,940 as Bitcoin struggles to breach the $100K mark.
While Bitcoin struggles to breach the $100K threshold, gold has surged to a record-high of $2,940 per ounce, solidifying its market position.
This development has reignited the longstanding debate between Bitcoin and gold, with experts at both ends weighing in on the implications, reports CoinGape.
Key Takeaways
- Record Rally: Gold’s price has hit an all-time high of $2,940 per ounce, appreciating by 44% over the last year and nearly 10% since the beginning of 2025.
- Relative Market Cap Decline: Bitcoin’s market cap relative to gold has decreased from 10.72% in 2021 to 9.95% today, indicating a shift in investor sentiment.
- Capital Outflows: Veteran trader Peter Brandt noted significant capital outflows from Bitcoin as long-term whales take profits, highlighting a potential market correction.
- Divergent Views: While some experts, like Michael van de Poppe, foresee a potential rebound in Bitcoin similar to gold’s performance, others, such as Peter Schiff and Charles Edwards, remain skeptical about Bitcoin’s short-term prospects.
Gold’s Record Rally and Bitcoin’s Struggle
Gold’s rally has been nothing short of remarkable, reaching a record-high of $2,940 per ounce as investor confidence in the yellow metal strengthens amid economic uncertainties. In contrast, Bitcoin has continued to struggle, unable to break past the $100K mark, even as its market performance is increasingly measured against gold’s enduring strength. Critics argue that Bitcoin’s declining relative market cap signals a diminishing role as “digital gold.”
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Divergent Expert Opinions
The debate has been fueled by contrasting views from market experts. Peter Schiff, a well-known Bitcoin critic, points out that Bitcoin’s market cap relative to gold has fallen over the past few years, questioning Bitcoin’s claim as a modern safe-haven asset.
BTC price chart (2022-2025). Source: Statista.com
Meanwhile, veteran trader Peter Brandt has observed significant capital outflows from Bitcoin, suggesting that long-term whales might be taking profits after years of extraordinary returns. On the other hand, some analysts like Michael van de Poppe remain optimistic, predicting that Bitcoin could see a breakout in the coming weeks, while others compare current conditions to “summer 2024 vibes,” indicating prolonged stagnation.
Market Data and Investor Sentiment
Current market data underscores the divide: Bitcoin is trading around $97,650 with a 12% decline in daily trading volume to $33.3 billion, and futures open interest is only marginally up. Amid global economic uncertainty—exacerbated by escalating trade tensions and inflation concerns—investors are increasingly turning to gold as a hedge. This trend is prompting a rotation of funds, as traditional safe-haven assets gain appeal over more volatile cryptocurrencies like Bitcoin.
Looking Ahead
The divergence between Bitcoin and gold reflects broader shifts in market sentiment during turbulent economic times. While gold continues to draw safe-haven demand with its record-setting rally, Bitcoin faces significant challenges that may require a market rotation before it can reclaim momentum. As experts remain divided on Bitcoin’s near-term prospects, the ongoing debate underscores the evolving dynamics between digital and traditional assets.
Recently we wrote, that Bitcoin price has been consolidating within a tight 5% range below the critical $100,000 psychological level for the past six days.
