Gold Surges 1.8% Amid Middle East Tensions as Bitcoin Drops 2.5%

Peter Schiff, a well-known critic of Bitcoin, has suggested that gold has surpassed Bitcoin as a store of value, particularly in light of recent geopolitical events in the Middle East. Schiff highlighted that the conflict between Israel and Iran has had a significant impact on various assets, including oil, gold, and Bitcoin.

Following the resumption of hostilities, oil prices surged by 5% and later climbed to a 10% profit due to supply concerns. Similarly, gold prices increased by 1.8% as investors sought safety amidst fears of economic instability. In contrast, Bitcoin's value decreased by 2.5%, and S&P futures fell by 1.8% as investors moved funds out of stocks.

Schiff argues that Bitcoin's performance during this period undermines its status as a 'safe haven' asset. He contends that if Bitcoin were truly 'digital gold,' it would appreciate during global tensions, much like gold. Instead, Schiff suggests that Bitcoin behaves more like a risk asset, similar to stocks, rather than a safe-haven asset like gold.

Schiff further supports his stance by pointing to the selloff of U.S. Treasuries and the increasing preference for gold among investors. He notes that the decline in U.S. government bonds indicates waning investor confidence, while the rise in gold prices shows that investors are seeking safety in this traditional store of value. Schiff believes that as treasuries continue to drop and gold rises, more investors and central banks will follow this trend, selling off their treasuries to buy more gold.

Despite Schiff's arguments, members of the Bitcoin community have pushed back, asserting that Bitcoin is experiencing short-term corrections and will rebound. Christopher Baker, a community member, argued that Bitcoin is more dynamic than gold and can recover losses quickly and significantly. Another user pointed out that despite the supposed depreciation in Bitcoin's value, prices have not dropped below their levels from a week ago. Additionally, Bitcoin has remained 0.75% up at $105,430.19 over the last seven days, with trading volume spiking by 40.56% to $73.19 billion in the last 24 hours, indicating that market participants remain confident in Bitcoin's potential to recover and reclaim previous levels.