Bitcoin News Today: Gold's Dominance Undermines Bitcoin's 'Digital Gold' Narrative

Gold surged past $4,000 per ounce in October 2025, outpacing Bitcoin's recent rally to a record $126,198, as veteran economist Peter Schiff intensified his critique of cryptocurrency's viability as a store of value. The precious metal's market valuation reached $27 trillion, dwarfing Bitcoin's $2.5 trillion market cap, and underscored Schiff's argument that gold remains the superior hedge against macroeconomic instability. Schiff, a long-time gold advocate, asserted that Bitcoin must climb to approximately $148,000 to match its historical performance relative to gold, a threshold that remains unmet despite the token's nominal gainsBitcoin Price Lags as Gold Hits $4,000, Peter Schiff Warns^[1].

The divergence in performance has fueled skepticism about Bitcoin's role as a "digital gold." While Bitcoin's price rebounded to a new all-time high, Schiff dismissed it as a "bear market rebound," noting that the token's value in gold terms-15% below its peak-suggests a lack of sustained strengthPeter Schiff Mocks Bitcoin Rally, Says It is 15% Below Gold Record^[2]. Gold's dominance was further highlighted by its resilience amid U.S. economic volatility, including a government shutdown and rising public debt, which Schiff argued reinforced its status as a safer asset compared to crypto's volatilityPeter Schiff Warns 2025 Collapse Could Wipe Out Bitcoin^[3].

Schiff's warnings extended to broader market dynamics, predicting that a continued gold rally could trigger a rotation of capital away from cryptocurrencies. "It's very likely that Bitcoin and everything crypto are about to be 'rugged' by gold," he stated on X, emphasizing that gold's ascent could outpace Bitcoin's ability to maintain investor confidencePeter Schiff Predicts Bitcoin Will Be Rugged by Gold^[4]. This perspective aligns with recent trends: Bitcoin ETFs experienced $871.6 million in outflows over six days in April 2025, while gold hit a record $3,175 during the same periodPeter Schiff Warns Bitcoin Could Drop as Gold Hits $4,000^[5].

The U.S. government's recent establishment of a Strategic Bitcoin Reserve also drew criticism from Schiff, who noted that the reserve's holdings had lost over 12% of value since March 2025. He contrasted this with gold's gains, arguing that a shift to gold would have yielded a 2% profit for the same periodBye Bye Bitcoin: 'Bitcoin Will Die In 2025' Peter Schiff Predicts^[6]. Meanwhile, institutional demand for gold continued to rise, with Goldman Sachs raising its 2026 gold price target to $4,900, citing geopolitical tensions and inflationary pressuresPeter Schiff Declares Bitcoin’s Surge a “Bear Market Rally”^[7].

Market analysts remain divided on the future of Bitcoin versus gold. While some, like JPMorgan, argue Bitcoin is "undervalued against gold," others, including Schiff, maintain that gold's real-term performance and historical reliability will continue to outshine crypto. The debate reflects broader uncertainties in the financial system, with Schiff warning that Bitcoin's design flaws could be exposed during a major economic downturn.

As gold's rally accelerates, the cryptocurrency market faces mounting pressure to justify its role as a long-term store of value. Schiff's assertions highlight the tension between traditional safe-havens and digital assets, with gold's performance serving as both a benchmark and a cautionary tale for crypto investors.