Economist and long-time Bitcoin critic Peter Schiff has reignited the gold-versus-Bitcoin debate after claiming that “gold is eating Bitcoin’s lunch.” His comments came as the precious metal surged to new all-time highs while Bitcoin struggled to maintain momentum following a sharp correction.
Gold’s Record Runoutpaces Bitcoin
On October 16, Peter Schiff took to X (formerly Twitter), declaring that Bitcoin had entered a “brutal bear market,” claiming that “Bitcoin is down 32% priced in gold since its August high.” According to Schiff, the latest divergence between the two assets proves that the yellow metal remains the superior store of value.
Gold recently climbed to a record high of around $4,300 per ounce, driven by heightened geopolitical tensions and increased safe-haven demand. In contrast, Bitcoin [BTC] pulled back sharply from its August peak above $120,000, slipping to about $108,000 after widespread liquidations rocked the crypto derivatives market.
How Accurate Is Schiff’s Claim?
While Schiff’s comparison paints a dramatic picture, the numbers tell a slightly different story. Data from TradingView and BullionVault indicate that gold has risen about 26% since early August, while Bitcoin has dropped roughly 14% in U.S. dollar terms over the same period.
This means Bitcoin’s value relative to gold has indeed weakened, but by closer to 25–27%, not the 32% Schiff suggested. The direction of his claim holds, but the degree of underperformance may be exaggerated.
Bitcoin’s Pullback Wasn’t About Fundamentals
Schiff has repeatedly argued that Bitcoin lacks intrinsic value and that its price movements are speculative bubbles waiting to burst. However, this latest correction had less to do with fundamental weakness and more with excessive leverage in the crypto market.
According to data from Coinglass, the October 10 flash crash led to over $9 billion in leveraged liquidations, wiping out overleveraged positions across major exchanges. Despite this, Bitcoin ETFs continued to record net inflows, signaling that institutional confidence remained intact.
In essence, gold’s rally reflected a shift toward safety amid global uncertainty, while Bitcoin’s correction was primarily a technical reset following overheated derivatives activity.
The Divergence in Behavior: Risk vs. Safety
The latest price trends underscore a broader theme — gold and Bitcoin behave very differently under macro pressure. Gold typically rallies when investors seek safety from market turmoil or expect lower interest rates. Bitcoin, on the other hand, often trades as a high-beta risk asset, responding more strongly to liquidity cycles, technology adoption, and speculative flows.
Historical data from Newhedge confirms that the correlation between gold and Bitcoin fluctuates widely, often moving between weakly positive and negative. This means that comparing their short-term performance can be misleading, as they respond to fundamentally different market forces.
Why Gold Is Outperforming Now
Several macroeconomic factors have contributed to gold’s current dominance. Rising geopolitical tensions, including ongoing global conflicts and uncertain monetary policy signals from the U.S. Federal Reserve, have boosted demand for traditional safe-haven assets.
Investors are also betting that central banks will slow balance sheet runoff, effectively supporting asset prices and lowering bond yields — a scenario historically favorable for gold.
Meanwhile, Bitcoin’s short-term weakness is being amplified by speculative leverage unwinds rather than declining adoption. On-chain metrics show that long-term holders have remained largely inactive, suggesting that conviction among core investors remains strong.
Bitcoin Still Holds the Long-Term Edge
While Peter Schiff celebrates gold’s current outperformance, Bitcoin’s long-term narrative remains compelling. Year-to-date, BTC is still up over 17%, significantly outperforming most traditional assets. Institutional adoption continues to grow, with ETFs maintaining consistent inflows and on-chain activity remaining healthy.
Moreover, the crypto market’s total capitalization still exceeds $3.8 trillion, reflecting broad investor confidence despite volatility. Unlike gold, Bitcoin’s programmable scarcity and ease of transfer continue to attract a new generation of investors who view it as “digital gold.”
Schiff’s Historical Skepticism
This is not the first time Peter Schiff has sounded alarms about Bitcoin. A well-known gold advocate and CEO of Euro Pacific Capital, Schiff has often predicted Bitcoin’s demise — most notably during past market downturns in 2013, 2018, and 2022. Each time, Bitcoin eventually recovered and reached new highs.
His arguments typically center around Bitcoin’s lack of physical form and intrinsic value. However, proponents counter that its decentralization, transparency, and finite supply make it an evolution of money rather than a speculative fad.
While Schiff’s critique resonates with traditional investors, younger generations continue to view Bitcoin as a hedge against fiat currency debasement — the very concern that once made gold appealing.
The Bottom Line: Context Matters
So, is Peter Schiff right this time? Partially. Gold has indeed outperformed Bitcoin since August, and the BTC/gold ratio has tilted in favor of the precious metal. However, labeling this shift as a “brutal Bitcoin bear market” oversimplifies the picture.
Bitcoin’s correction was driven by leverage and timing, not collapsing fundamentals. Gold’s rise, meanwhile, reflects temporary macro uncertainty rather than a permanent shift in investor preference.
In the end, both assets serve different purposes — gold as a centuries-old safe haven and Bitcoin as a modern hedge against inflation and centralized monetary control.
As Schiff continues his long-standing criticism, markets may once again prove that short-term trends rarely define long-term value. Gold may be “eating Bitcoin’s lunch” for now, but the battle for the ultimate store of value is far from over.
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