Bitcoin News Today: Gold's Ascent Triggers Crypto Exodus: Bitcoin's Bear Market Battle

Bitcoin Faces Potential Setback as Gold Gains Appeal Says Peter Schiff

Peter Schiff, a prominent advocate for gold and a vocal critic of Bitcoin, has warned that the cryptocurrency could face a significant downturn if gold prices surge above $4,000 per ounce. Schiff's prediction, reiterated across multiple platforms including X (formerly Twitter) and interviews, hinges on the idea that investors may shift capital from digital assets to traditional safe-haven assets amid rising inflationary pressures and economic uncertainty. "It's very likely that Bitcoin and everything crypto will be rugged by gold," Schiff stated, emphasizing that a gold price above $4,000 could trigger a sell-off in Bitcoin and broader crypto markets .

Bitcoin's recent price action has fueled this debate. The cryptocurrency, which reached an all-time high of $126,000 in late September 2025, has since retreated to below $122,000, reflecting heightened volatility. This decline coincided with a potential three-week U.S. government shutdown, which has paused the Securities and Exchange Commission (SEC)'s approval process for crypto-related exchange-traded funds (ETFs). Meanwhile, gold has maintained steady gains, trading near $2,700, with institutional interest in the precious metal growing as a hedge against inflation and economic instability .

Schiff's bearish thesis is rooted in a comparison of Bitcoin's performance relative to gold. He argues that Bitcoin is currently 20% below its all-time high when priced in gold terms, effectively placing it in a bear market territory. He further predicts that capital will flow from Bitcoin ETFs into gold, silver, and mining stocks if the yellow metal's price continues to rise. This shift, he claims, could drive Bitcoin below $100,000, limiting investors' ability to reallocate assets effectively .

However, not all analysts share Schiff's pessimism. Brian Shuster, a tech entrepreneur, has challenged his views, noting that Bitcoin's growing market capitalization and adoption trends could make it more resilient than gold. Similarly, veteran investor Paul Tudor Jones has predicted a "surge" in Bitcoin's price, framing it as a hedge against fiat currency devaluation and a potential beneficiary of macroeconomic shifts. These contrasting perspectives highlight the ongoing debate between traditional finance and the crypto ecosystem .

Market dynamics underscore the tension between gold and Bitcoin. The total crypto market capitalization has dipped to around $2.58 trillion, reflecting broad profit-taking after weeks of gains. Major cryptocurrencies such as Ethereum, XRP, and Solana have also experienced declines, while gold's steady ascent has reinforced its appeal as a store of value. Analysts note that Bitcoin's underperformance relative to gold-particularly in terms of its correlation with global money supply metrics-has raised questions about its role as a long-term hedge .

Despite the skepticism, Bitcoin's proponents remain optimistic. Michael Saylor, CEO of MicroStrategy, has reiterated his belief that Bitcoin could ultimately trade at 10 times gold's value, positioning it as "digital capital" for global credit markets. This vision aligns with growing institutional adoption, including record inflows into Bitcoin ETFs and expanding corporate holdings of the cryptocurrency. However, Schiff's warnings underscore the fragility of crypto's current momentum, particularly in the face of regulatory delays and macroeconomic headwinds .

As the debate unfolds, market participants are closely monitoring key indicators. The SEC's resumption of crypto ETF approvals, developments in inflation expectations, and the trajectory of gold prices will likely shape investor sentiment. For now, Schiff's predictions have contributed to a climate of caution, with some investors reevaluating their exposure to volatile digital assets in favor of perceived stability in traditional markets .