Key Points:
- •Bitcoin's status as digital gold questioned after significant price drop.
- •Debate on Bitcoin’s safe-haven role continues.
- •Gold remains a strong safe-haven asset.
Economist Peter Schiff has reignited attacks on Bitcoin's digital gold narrative, following its sharp price crash on October 10, 2025.
Bitcoin's volatility compared to gold's stability raises questions about its safe-haven status, affecting market sentiment.
Bitcoin's significant drop in value reignites the debate on its role as digital gold. Economist Peter Schiff, a long-time critic, uses this event to question Bitcoin's status as a stable asset compared to physical gold.
Schiff emphasizes Bitcoin's volatility compared to gold's record performance, arguing its position as a safe-haven asset is overstated. He points out Bitcoin's substantial 20% decrease in gold terms as a key indicator.
The sudden dip in Bitcoin's price resulted in a noticeable impact on the cryptocurrency market. The decline highlighted Bitcoin's risk profile, intensifying the debate around its stability as a digital reserve.
Amidst market turbulence, institutional interest remained robust, with owners accounting for about 40% of Bitcoin. Gold's ascent to a record high emphasizes its enduring appeal as a store of value.
The contrasting performance of Bitcoin and gold raises questions on their respective roles in financial portfolios. Bitcoin's history of volatility sparks discussions on its equity-like correlation during market stress.
Analysts note Bitcoin's long-term relative outperformance over gold, despite recent declines, prompting some investors to consider its potential in a diversified asset strategy. Historical patterns suggest recovery trends post-major sell-offs, supporting Bitcoin's enduring appeal.
Peter Schiff, CEO, Euro Pacific Capital, remarked, "Bitcoin is not living up to its hype... Since Bitcoin is promoted as being digital gold, being down 20% in gold is more significant than being down 10% in dollars."