Bitcoin News Today: Gold Soars Past Bitcoin as Dollar Fears Reshape Safe-Haven Playbook

Popular economist Peter Schiff has raised concerns about Bitcoin's market trajectory, warning that it is nearing the territory of a bear market. His remarks come amid a broader analysis of how Bitcoin has performed against traditional safe-haven assets like gold, which has seen a significant rise in value in 2025. Gold is up more than 33% this year, outperforming both the Nasdaq and Bitcoin, with the BTC-XAU ratio — the amount of gold needed to buy one Bitcoin — now standing at 31.2 ounces compared to 40 ounces in December 2024 [1].

The rise in gold is attributed to macroeconomic factors, including falling government bond yields in Western economies, growing concerns over debt burdens, inflation, and slowing economic growth. These dynamics reinforce gold's historical role as a store of value. Technical analysis suggests that the BTC-XAU ratio has been consolidating in a bullish continuation pattern since 2017. While the current correction is relatively shallow, historical precedents show significant drawdowns in previous cycles, raising concerns about potential volatility ahead [2].

Bitcoin, on the other hand, has seen a more moderate performance, gaining roughly 16.46% in 2025, according to CoinDesk Data. The divergence in performance reflects the different roles that gold and Bitcoin play in investors' portfolios. Gold typically serves as a hedge during equity market downturns, while Bitcoin has increasingly been viewed as a counterweight to bond market stress, especially during periods of rising U.S. Treasury yields [3]. This dynamic has been supported by Bitwise Asset Management’s research, which suggests that holding both assets can enhance diversification and optimize risk-adjusted returns.

However, the growing popularity of spot Bitcoin ETFs has led to increased inflows, making Bitcoin behave more like a mainstream risk asset and reducing its "purity" as a bond hedge. This shift in market dynamics has raised questions about Bitcoin’s ability to maintain its safe-haven appeal. The rise of Bitcoin ETFs has also led to a surge in assets under management, with some estimates suggesting that Bitcoin ETFs are now closing in on gold ETFs in terms of value [4].

Amid this backdrop, concerns have also been raised about the potential erosion of the U.S. dollar's global reserve-currency status, especially in light of ongoing tensions between the Trump administration and the Federal Reserve. Goldman Sachs analysts have warned that a loss of confidence in the dollar could lead to increased demand for gold, further reinforcing its role as a store of value independent of institutional trust [4]. Such a scenario could lead to a significant revaluation of gold, with some analysts estimating that a shift of just 1% of the U.S. Treasury market into gold could push its price to nearly $5,000 per troy ounce.

In light of these developments, Bitcoin's role as a hybrid asset — combining the characteristics of both gold and equities — has become more prominent. As the fourth quarter traditionally marks a strong period for Bitcoin, with historically positive returns in October, market participants are closely watching for signs of a potential breakout in the coming months [4].

Source: [1] Gold Outshines in 2025 as Bitcoin-Gold Ratio Eyes Q4 Breakout (https://www.coindesk.com/markets/2025/09/04/gold-outshines-in-2025-as-bitcoin-gold-ratio-eyes-q4-breakout) [2] Gold Outshines in 2025 as Bitcoin-Gold Ratio Eyes Q4 Breakout (https://finance.yahoo.com/news/gold-outshines-2025-bitcoin-gold-082518497.html) [3] Bitcoin or Gold: Which Is the Better Hedging Asset in 2025? (https://www.coindesk.com/markets/2025/08/31/given-trump-s-pro-crypto-stance-is-it-time-to-fully-ditch-gold-in-favor-of-bitcoin) [4] Serious U.S. Dollar Fed Warning Issued As Bitcoin Mounts 24 Trillion Gold Price Challenge (https://www.forbes.com/sites/digital-assets/2025/09/06/goldman-sachs-issues-serious-us-dollar-fed-warning-as-bitcoin-mounts-24-trillion-gold-price-challenge/)