Bitcoin Loses 24% Value Against Gold Since 2021 Peak

Peter Schiff, a well-known advocate for gold, has recently argued that Bitcoin is in a "stealth bear market" when compared to gold. Schiff's assertion is based on the observation that one Bitcoin now buys 24% fewer ounces of gold than it did at its peak value in 2021. Specifically, one Bitcoin now fetches 27.7 ounces of gold, down from 36.3 ounces at its peak. This decline, according to Schiff, indicates that gold remains a more reliable store of value compared to Bitcoin.

Schiff's perspective is rooted in his longstanding belief that gold is the "apex predator" of financial assets. He contends that gold's enduring value and stability make it a more dependable store of value compared to digital assets like Bitcoin. This view is further supported by Schiff's assertion that gold is currently surging towards $3,000 per ounce, while both Bitcoin and stocks are experiencing declines. This contrast highlights Schiff's belief that gold's performance is more robust and consistent over time.

Schiff's critique of Bitcoin is not new; he has consistently challenged the notion that Bitcoin can outperform gold as a store of value. In a series of posts, Schiff emphasized that Bitcoin's value in gold terms has fallen by 24% since its 2021 peak. This decline, according to Schiff, indicates a "stealth bear market" for Bitcoin, where its value has been eroding relative to gold without garnering widespread attention.

Schiff's arguments are particularly directed at Michael Saylor, a prominent Bitcoin advocate. Schiff has mocked Saylor, claiming that Bitcoin has been in a bear market for over three years when measured against gold. This challenge to Saylor's beliefs about Bitcoin's supremacy as a store of value reflects Schiff's conviction that gold's dominance in the financial market is unassailable.

However, some analysts have pointed out that Schiff's timeframe is selective to fit his bias. When viewed over a 10-year window, Bitcoin has outperformed gold by over 12,000%. Over the last two years alone, Bitcoin has jumped by 200% against gold. This perspective suggests that while Bitcoin may have experienced a recent decline relative to gold, its long-term performance remains impressive.

In 2025, Bitcoin lost 32% of its value relative to gold, slipping from 41 to 28 on the BTC/gold chart. This indicates that gold has been a relatively better store of value in the first quarter of 2025, especially after the cryptocurrency erased 'Trump pump' gains while gold hit a new high of $3,000. This shift in value highlights the volatility of digital assets compared to the stability of gold.

The scale of institutional investors' interest in gold, relative to Bitcoin, is also evident. According to the latest data, Gold ETFs' market cap surpassed the collective size of U.S. Spot Bitcoin ETFs. This "flipping" is linked to gold's 12% spike in 2025, indicating a renewed interest in gold as a safe-haven asset. Despite this, some analysts maintain that Bitcoin ETFs will triple gold ETFs in the long run, suggesting more upside potential for Bitcoin relative to gold.

In summary, Peter Schiff's assertions about Bitcoin being in a "stealth bear market" relative to gold are based on the significant decline in Bitcoin's value in gold terms since 2021. Schiff's advocacy for gold as the superior store of value is grounded in its enduring stability and performance, which he believes outlasts digital competitors like Bitcoin. This ongoing debate between Schiff and Saylor highlights the differing views on the future of digital assets versus traditional stores of value.