Gold Soars, Bitcoin Stumbles as Schiff Claims Victory

As gold prices shattered records again Thursday, reaching an unprecedented $3,176 per ounce, longtime cryptocurrency skeptic Peter Schiff seized the moment to declare Bitcoin is “losing” its battle against traditional safe-haven assets. The stark performance divergence comes amid heightened market volatility and growing concern about the stability of digital assets during economic turmoil.

“Bitcoin is losing,” Schiff, CEO of Euro Pacific Asset Management, stated bluntly in his assessment of the cryptocurrency’s recent performance relative to gold, according to TradingView. His comments highlight the nearly 30% gap between Bitcoin’s current trading value and its February peak.

The leading cryptocurrency has struggled to maintain momentum, slipping to $78,669 in Thursday’s trading after experiencing significant volatility throughout the week. Meanwhile, gold continues its relentless climb to new heights, bolstering Schiff’s long-held position that precious metals offer superior protection during economic uncertainty.

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Financial Crisis Parallels

Schiff’s criticism extends beyond price comparisons. In a provocative social media post Thursday, he drew a historical parallel that has raised eyebrows across financial markets: “Bitcoin was born out of the financial crisis of 2008. Ironically, the financial crisis of 2025 will kill it,” as reported by Yahoo Finance.

This prediction comes as markets worldwide grapple with volatility triggered by escalating trade tensions, rising inflation concerns, and fears of economic contraction. The S&P 500 plunged 3.46% Thursday, erasing much of Tuesday’s dramatic relief rally that Schiff dismissed as merely a “bear market rally.”

“It’s not too late to sell stocks,” Schiff warned investors, suggesting the market downturn may be far from over. His consistently bearish outlook has earned him both critics and admirers throughout his career, particularly regarding his persistent skepticism of cryptocurrencies.

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China’s Strategic Position

Schiff also dismissed speculation that China might purchase Bitcoin as a strategic move to counter U.S. cryptocurrency initiatives. “They are not that dumb. They are happy to sell us Bitcoin, though,” he remarked, countering predictions from Wyoming Senator Cynthia Lummis about a potential “arms race” over Bitcoin between the global superpowers.

His comments further claimed that China has already divested its Bitcoin holdings, suggesting the country recognizes inherent weaknesses in the cryptocurrency that enthusiasts overlook. This assessment contrasts sharply with narratives about Bitcoin’s potential role in geopolitical financial strategy.

Schiff’s broader economic commentary has consistently linked cryptocurrency weakness to what he sees as misguided economic policies. He recently compared Trump’s tariff strategies to the “infamous Hindenburg disaster,” arguing they expose fundamental vulnerabilities in the U.S. economy that will ultimately impact digital assets.

Bitcoin’s Resilience History

Despite Schiff’s confident predictions, Bitcoin has demonstrated remarkable resilience throughout its turbulent history. According to data from Bitcoindeaths.com cited by Yahoo Finance, the cryptocurrency has been declared “dead” 429 times to date. A theoretical investment of just $100 made each time Bitcoin faced an obituary would now be worth more than $83 million.

This pattern of recovery following pessimistic predictions has been a consistent feature of Bitcoin’s evolution, though current market conditions present unique challenges. Cryptocurrencies face particular pressure during this period of economic uncertainty, with investors increasingly seeking the perceived stability of traditional safe havens like gold.

Ethereum, the second-largest cryptocurrency, has faced similar challenges following an endorsement from Eric Trump that preceded a significant price drop. Schiff has specifically warned against taking investment advice from the Trump family regarding digital assets.

Market Outlook

As financial markets continue to exhibit extreme volatility, the debate between gold advocates like Schiff and cryptocurrency enthusiasts shows no signs of resolution. Gold’s performance during this period of economic stress has certainly bolstered the position of traditional safe-haven proponents.

However, cryptocurrency advocates point to the young asset class’s resilience through multiple market cycles and its fundamental value proposition as a hedge against currency devaluation and government intervention. Whether Bitcoin can recover from its current downturn remains one of the central questions in today’s financial landscape.

For now, Schiff’s declaration of gold’s victory over Bitcoin finds support in immediate market performance, though the long-term verdict on digital assets versus precious metals during economic crises remains to be determined.

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