Bitcoin Falls 15% Below 2021 Peak As Gold Surges 30%

Peter Schiff, a well-known economist and advocate for gold, has once again expressed his doubts about Bitcoin, following its recent decline below $104,500 during early Asian trading. Schiff's comments come as gold prices surged above $3,410, driven by heightened tensions between Israel and Iran. According to Schiff, this price movement supports his long-standing belief that Bitcoin's bubble has reached its peak.

Schiff contends that despite numerous bullish factors, including the introduction of spot ETFs, El Salvador's adoption of Bitcoin as legal tender, celebrity endorsements, institutional interest, NFTs, and significant corporate investments, Bitcoin has failed to outperform gold during times of crisis. He notes that while gold prices rose in response to geopolitical tensions, Bitcoin's value plummeted, falling more than 15% below its November 2021 peak when priced in gold. This, Schiff argues, is evidence that Bitcoin is not a reliable store of value and has already topped out.

Schiff's criticism is not limited to Bitcoin; he also targets MicroStrategy, a technology firm that has accumulated over 1% of all circulating Bitcoin. He argues that the company's decision to leverage its balance sheet to acquire Bitcoin has made its stock performance almost entirely dependent on Bitcoin's fate. As gold prices rose in response to geopolitical tensions, both Bitcoin and MicroStrategy's stock fell, reinforcing Schiff's view that the company has become a glorified Bitcoin fund with high-risk exposure.

Schiff has consistently criticized MicroStrategy and its executive chairman, Michael Saylor, accusing the company of straying from its core business and venturing into high-risk territory. He warns that the firm's strategy could end badly, especially if liquidity dries up and only real stores of value hold. Schiff sees Bitcoin as just another speculative asset, and he believes that institutions that have gone all-in, particularly those using leverage, could be the first to feel the impact if sentiment shifts.

Schiff's message remains consistent: hype has its limits, and when liquidity dries up, only the real stores of value will hold. While some in the crypto world have dismissed Schiff's views as old-school or too negative, the recent market moves are starting to align with his warnings. The timing of Schiff's critique is notable, as 2025 has been a significant year for Bitcoin, with ETFs launching, regulations becoming clearer, and more companies investing. Despite this momentum, gold is performing better, and Schiff is using this gap to suggest that the so-called "digital gold" may be running out of steam.