Peter Schiff says ‘Gold is eating Bitcoin’s lunch’ – but is he right?

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Key Takeaways

Is Peter Schiff right about gold dominating Bitcoin?

Partly. Gold has outperformed Bitcoin by roughly 25-27% since August, but BTC is still up 17% year-to-date.

What’s driving the divergence?

Gold’s rally reflects safe-haven demand amid geopolitical tensions, while Bitcoin’s correction stemmed from $9 billion in leveraged liquidations – not fundamental weakness.

Ah, the sweet, bitter dance of precious metals and digital dreams. Gold’s glittery ascent to the heavens and Bitcoin’s quick drop back to Earth has rekindled the old chestnut of their rivalry. Enter the ever-skeptical Peter Schiff, who, with a gleam of “I told you so,” is now crowing about his beloved yellow rock feasting on Bitcoin’s lunch. Well, someone’s been reading their own press clippings again. 🍿

On October 16, Schiff took to X (formerly Twitter, of course) to announce that “Gold is eating Bitcoin’s lunch,” proudly boasting that Bitcoin is “down 32% priced in gold since its August high.” A bold claim, like calling a knight out in a chess match, but is he right? Let’s break it down-minus the soapboxing, of course.

Schiff calls a Bitcoin bear market

Peter couldn’t resist waving his gold standard flag as Bitcoin floundered. On that fateful day, he declared that the ongoing Bitcoin bear market would be “brutal,” because of course, “brutal” is the new black. 🤡 He warned investors to “sell your fool’s gold and buy the real thing.” Guess what? That tweet went viral. Well, shocker. 🚀

But here’s the rub: Peter Schiff is no stranger to calling Bitcoin dead during every market hiccup. So, are we really shocked? More like disappointed in his eternal pessimism.

Schiff’s comments received over half a million views. Yes, half a million. Because why wouldn’t you listen to someone who’s called Bitcoin a “fad” since its inception?

How BTC has trended since August

Before you go canceling your crypto wallet, let’s look at some real numbers, shall we? According to TradingView, Bitcoin has dropped around 14% in USD terms since early August. From a pretty hefty high of $120,000, it’s now flirting with the $108,000 mark after last week’s liquidation-induced sell-off. 👀

Meanwhile, gold’s been doing a little happy dance, gaining around 26%, from about $3,400/oz to a shining $4,291/oz. 🏅

So, yeah, Bitcoin’s value relative to gold has weakened by about 25-27%. But hold up, don’t start sending out those “RIP Bitcoin” t-shirts just yet. The decline is a little less catastrophic than Schiff would have you believe. Keep your hats on, folks.

BTC/gold correlation breakdown

Here’s where it gets interesting: Historical data from Newhedge tells us that the relationship between Bitcoin and gold is, well, kind of like a bad relationship-sometimes hot, sometimes cold, but mostly confused. Gold tends to shine in times of macroeconomic tension, while Bitcoin tends to thrive (or flounder) based on liquidity cycles and ETF flows. 🍿

Right now, gold’s rally is fed by geopolitical jitters and the possibility that the Fed is holding onto its balance sheet a little longer. Meanwhile, Bitcoin’s slump has more to do with $9 billion in liquidations-not because people suddenly woke up and realized their favorite cryptocurrency is a “fad.” Oops.

Context behind the move

Now let’s talk context. Bitcoin’s “weakness” comes despite solid ETF inflows and resilient on-chain data. Meanwhile, gold is basking in the safe-haven spotlight, as everyone and their dog diversifies their reserves. It’s a rotation, not a revolution, folks. 🚴‍♂️

Bitcoin still commands a total market cap over $3.8 trillion, which is nothing to scoff at. In short, gold might be grabbing the headlines now, but don’t assume the crypto market is down for the count just yet.

The bottom line

So here we are: Peter Schiff is kind of right. Gold has outperformed Bitcoin since August, and yes, the ratio between the two has shifted. But calling this the beginning of a “brutal Bitcoin bear market”? Well, that’s more like a Hollywood script than a financial forecast. 🧨

Bitcoin is still up over 17% year-to-date, and long-term holders? They’re not sweating the volatility. So, while gold is winning the short-term narrative, the Bitcoin vs. Gold debate is far from over. Spoiler alert: It’s not just about gold and Bitcoin. It’s about all of us trying to figure out what’s real and what’s “shiny.” 🌟

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2025-10-17 00:56