Peter Schiff says Bitcoin is in a 'hidden bear market' when valued in gold
- The Bitcoin vs. gold debate has reignited after Schiff claimed that BTC is in a hidden bearish trend.
- Is Bitcoin Underperforming Gold? Schiff notes a 22% decline in the BTC/gold ratio.
- Bitcoin and gold correlation is declining as supporters point to BTC's long-term outperformance.
Economist and gold proponent Peter Schiff has renewed his criticism of Bitcoin, this time arguing that the cryptocurrency is in a “hidden bear market” against gold.
Schiff noted in his post on X that, measured in gold, Bitcoin is down 22% from its August 2025 high and 20% from its November 2021 peak.
He reasoned that one Bitcoin today, at around $109,702, is worth approximately 29 ounces of gold at a spot price of around $3,773 per ounce. At Bitcoin's peak on August 14, at $124,128, this ratio was nearly 37 ounces, and in November 2021, it was 35.6 ounces.
According to Schiff, this falling ratio shows why Bitcoin is underperforming gold and why Schiff has consistently positioned gold as a more reliable inflation hedge than Bitcoin.
Read also: Peter Schiff claims that if you bought gold instead of Bitcoin or MicroStrategy, you gained 27%.
Bitcoin supporters are fighting back
Bitcoin supporters quickly responded to Schiff's comments. Bitcoin investor John Ratcliffe argued that the two assets are not in conflict and that both can thrive during periods of rising inflation. “When hyperinflation hits, both Bitcoin and gold will continue to rise,” Ratcliffe said.
Others reminded readers of Schiff's past predictions, including his 2018 forecast that Bitcoin, then priced at $3,800, would crash to $750. Instead, the cryptocurrency rose to over $100,000 in the following years, significantly outpacing gold.
These responses reflect the familiar Bitcoin vs. gold debate that has divided investors for years. Gold proponents emphasize the metal's historical stability, while Bitcoin supporters point to its adoption momentum and higher long-term returns.
Bitcoin and gold returns show contrasting data
Several investors cited performance data to refute Schiff's claims. From September 2020 to September 2025, Bitcoin rose from $10,749 to $109,541, representing a return of approximately 919%. Over the same period, gold rose from $1,861 to $3,790 per ounce, representing a return of only 104%.
Market commentator Marcus Burelius accused Schiff of “date-picking” to highlight gold's superiority. He argued that Bitcoin's stronger long-term growth demonstrates its ability to compete with traditional safe-haven assets. The correlation between Bitcoin and gold isn't straightforward, as the ratios can fluctuate, but Bitcoin has delivered significantly higher returns for over five years.
The controversy reflects a broader split in financial markets over whether gold is a better investment, highlighting the metal's historical role as a stable store of value compared to Bitcoin's higher returns and growing adoption.
Related: Bitcoin (BTC) price needs to break $116,800 to become 'explosive,' leading analyst says
Schiff insists that gold remains the only reliable hedge. Bitcoin supporters criticize Schiff for underestimating how quickly digital adoption is changing investment portfolios. However, it's clear that Bitcoin's price relative to gold has fallen in recent months, giving Schiff new arguments.
But the long-term comparison still favors Bitcoin, which is why the Bitcoin vs. gold debate will continue to dominate investor discussions.
Source: cryptonews.net
