Gold Surges 1.14% as Bitcoin's Safe Haven Status Questioned

Peter Schiff, a well-known advocate for gold, has recently questioned Bitcoin's status as a "safe haven" asset. This critique comes at a time when global markets are experiencing significant volatility, and investors are seeking assets that can provide stability during economic uncertainty. Schiff's comments were sparked by the recent surge in gold prices to near-record levels, which contrasts sharply with Bitcoin's underwhelming performance during the same period.

Schiff's argument is based on the observation that gold has historically been a reliable store of value during economic upheavals. In contrast, Bitcoin's price fluctuations have raised questions about its viability as a stable investment option. Schiff remarked, “Gold prices are almost at record levels, yet Bitcoin fails to show the same resilience against economic fluctuations. I believe it’s incorrect to describe Bitcoin as a safe haven.” This perspective has reignited debates within financial circles and among cryptocurrency investors about the true nature of Bitcoin as a safe haven asset.

The recent upsurge in geopolitical risks has significantly influenced investor preferences regarding both traditional and digital assets. Schiff believes that this environment will result in a greater shift towards traditional assets like gold. Bitcoin's volatility has prompted discussions about whether it is a risky choice for investors seeking stability. The contrasting movements of Bitcoin and traditional safe haven assets like gold and oil have fueled renewed criticism of Bitcoin's ability to serve as a hedge during macroeconomic uncertainty.

Gold climbed to $3,421, an increase of $38.60 or 1.14%, while oil prices jumped by 5%, signaling investors’ shift toward perceived safer assets. Schiff pointed to these market reactions as evidence that investors still turn to physical gold in times of crisis. He questioned how anyone could consider Bitcoin as a digital version of gold, given its price decline during the same period. Schiff's criticism was echoed by other market participants, including former Chief Market Strategist Gil Morales, who argued that Bitcoin's price reaction exposed its nature as a speculative asset rather than an alternative store of value.

Morales likened Bitcoin's behavior to that of a tech stock, stating that in a risk-off environment, Bitcoin declines like any other risk asset. Some market participants countered this argument by highlighting logistical challenges in trading physical gold, claiming that selling gold through platforms can result in significant transaction costs. However, Schiff disputed the cost claim, stating that selling gold should not incur such high expenses. Despite the criticisms, comparisons between Bitcoin and gold have remained a central theme. A user cited historical price growth as a reason to consider Bitcoin superior, noting Bitcoin’s rise from $0.30 in 2011 to over $112,000 in 2025. In contrast, gold rose from $1,150 to a range between $2,838 and $3,375 over the same period.

Mike Novogratz, CEO of Galaxy Digital, predicted that Bitcoin could eventually reach $1 million, driven by rising institutional demand. He pointed to reduced global confidence in the U.S. dollar and BlackRock’s involvement as key factors accelerating this shift. However, Schiff underscored gold's historical role as a safe haven for investors while sharply criticizing Bitcoin's attempt to adopt that role. As uncertainty lingers in markets, investors consider diversifying their portfolios to mitigate risks. Interest in both gold and crypto assets endures, with such assessments continuing to influence investors. The future performance of gold and Bitcoin will likely remain under close scrutiny.