Bitcoin News Today: Gold's Rise Sparks Crypto Exodus as Experts Clash Over Value Haven

Gold prices surged past $4,000 per ounce on October 7, 2025, marking a 53% increase year-to-date and doubling in two years, according to TradingView data. This milestone coincided with a decline in Bitcoin, which fell below $122,000, a 1.3% drop, as of 4:37 a.m. EST. Economist Peter Schiff, a long-time advocate for gold, attributed the crypto market's struggles to the metal's rising dominance, warning that Bitcoin and other digital assets are "about to be rugged by gold." Schiff argued that Wall Street's excessive optimism toward crypto has created an unsustainable market environment, with gold's ascent likely to trigger a broader sell-off in digital assets title3^[3].

The total crypto market capitalization has contracted to approximately $2.58 trillion, reflecting a controlled profit-taking phase amid inflationary pressures and shifting investor sentiment. Schiff emphasized that gold's role as a traditional store of value is outpacing Bitcoin's, noting that the cryptocurrency remains 15% below its historical high when priced in gold terms. He predicted further capital outflows from crypto into gold, which he views as a superior hedge against economic uncertainty. "Bitcoin's rally is just a bear market bounce until it outperforms gold," Schiff stated title2^[2].

Schiff's bearish outlook contrasts with bullish forecasts from some crypto proponents. Entrepreneur Brian Shuster challenged his views, arguing that Bitcoin's smaller market cap leaves more room for growth compared to gold. Shuster highlighted that Bitcoin's utility as a decentralized asset and its adoption in emerging markets could drive long-term gains. However, Schiff dismissed these arguments, asserting that gold's historical performance and institutional appeal will continue to attract capital, particularly as the U.S. dollar weakens title4^[4].

The interplay between gold and crypto has broader implications for investor behavior. Institutional demand for gold has risen as rate cut expectations shift and inflation fears persist, with the metal trading at $2,700 as of October 7. Meanwhile, Bitcoin's recent all-time high in fiat terms has not translated to a similar breakthrough in gold terms, a metric Schiff considers critical for validating its "digital gold" narrative. Analysts at VanEck projected that Bitcoin could eventually capture half of gold's market cap post-halving in 2028, but this remains a long-term bet title3^[3].

Market dynamics suggest a reshuffling of asset allocations. BlackRock's spot Bitcoin ETF (IBIT) continued to attract inflows, with $899.4 million added on October 7, indicating sustained institutional interest. However, the ETF's performance may hinge on Bitcoin's ability to outperform gold, a threshold Schiff insists has yet to be met. As gold's rally accelerates, the crypto sector faces pressure to defend its valuation against a traditional safe-haven asset.