Gold May Be Outperforming Bitcoin Since August, but Bitcoin Still Shows Resilience, Data Suggests

• Gold vs Bitcoin: gold outperformed BTC by ~25–27% since August

• Bitcoin’s pullback followed roughly $9 billion in leveraged liquidations, not a collapse in demand.

• Gold’s rally reflects geopolitical safe‑haven flows; BTC remains up ~17% year‑to‑date (TradingView; BullionVault).

Is Peter Schiff right about gold dominating Bitcoin? Read COINOTAG’s concise analysis of price moves, correlations and investor implications—get the facts now.

Published: 16 October 2025 | Updated: 16 October 2025
Author: COINOTAG

Is Peter Schiff right about gold dominating Bitcoin?

Is Peter Schiff right about gold dominating Bitcoin? Partly — gold has outperformed Bitcoin since August amid safe‑haven flows, but Bitcoin’s recent weakness was magnified by liquidation events and does not erase BTC’s year‑to‑date gains or its structural market demand.

How have Bitcoin and gold trended since August?

From early August to mid‑October, Bitcoin fell about 14% in USD terms after a liquidation‑driven sell‑off, while gold rallied roughly 26% from near $3,400/oz to about $4,291/oz, according to TradingView and BullionVault data. That combination means BTC’s value relative to gold weakened by roughly 25–27%, supporting Schiff’s directional claim but suggesting the magnitude he cited may be overstated.

Schiff calls a Bitcoin bear market

On 16 October, economist and long‑time Bitcoin critic Peter Schiff declared on X that “Gold is eating Bitcoin’s lunch,” adding BTC is “down 32% priced in gold since its August high.” Schiff framed the move as evidence of a brutal bear phase and urged investors to “sell your fool’s gold and buy the real thing.” The remarks went viral, prompting debate across crypto and precious‑metals communities. Schiff has repeatedly championed physical gold while criticizing Bitcoin through multiple market cycles.

Source: X

How BTC has trended since August

Exchange and charting data reviewed by COINOTAG show that Bitcoin’s USD price retreated from above $120,000 in early August to around $108,000 after a liquidation‑heavy sell‑off, a decline of roughly 14% in nominal USD terms. That move was magnified on margin as leveraged positions were auto‑liquidated, accounting for a material portion of the short‑term volatility.

Source: TradingView

Despite the short‑term correction, on‑chain metrics and continued ETF inflows show ongoing institutional participation and long‑term accumulation. That suggests the pullback was more a function of market structure and leverage than a wholesale loss of conviction.

Why gold has surged

Gold’s rally to near $4,291/oz reflects renewed safe‑haven demand amid geopolitical tensions and shifting expectations for central‑bank balance‑sheet normalization. Investors and institutions have rotated into gold as a perceived store of value during heightened macro uncertainty. BullionVault and other market data sources report gold’s appreciation of roughly 26% over the same period.

Source: BullionVault

BTC/gold correlation breakdown

Historical analysis from Newhedge indicates the correlation between Bitcoin and gold is inconsistent, often oscillating between positive and negative values. Gold typically rises during macro risk‑off episodes and declining yields, while Bitcoin tends to act like a high‑beta risk asset that amplifies liquidity cycles, ETF flows and sentiment changes.

Source: Newhedge

That divergence widened in early October as geopolitical headlines and expectations for slower Fed balance‑sheet runoff boosted gold, while an episode of concentrated leveraged selling drove BTC’s short‑term weakness.

Context behind the move

Key drivers differ: gold’s advance is mainly macro‑driven safe‑haven demand; Bitcoin’s correction was liquidity and leverage‑driven. ETF inflows into BTC products and resilient on‑chain metrics indicate continued structural demand for cryptocurrencies even as price action normalizes.

The broader crypto market retains a market capitalization above $3.8 trillion, a sign that investor interest remains material despite episodic volatility.

Frequently Asked Questions

Has Bitcoin lost its status as a digital store of value?

Not definitively. While short‑term price action can be volatile, Bitcoin’s long‑term thesis as a digital, scarce asset remains intact for many investors. Institutional inflows and on‑chain accumulation metrics show persisting demand, even amid periodic corrections.

Should investors switch from Bitcoin to gold now?

Investment decisions depend on individual risk tolerance and time horizon. Gold offers near‑term safety during macro shocks, while Bitcoin can serve as a higher‑volatility, higher‑return allocation. Diversification, position sizing and a clear thesis are essential.

Key Takeaways

• Short‑term: Gold outperformed Bitcoin by roughly 25–27% since August due to safe‑haven flows.
• Drivers: BTC weakness was largely liquidation‑driven (~$9bn in levered liquidations), not a wholesale demand collapse.
• Action: Investors should weigh diversification and time horizon rather than treating this as a definitive regime shift.

Conclusion

Peter Schiff’s assertion that “gold is eating Bitcoin’s lunch” is directionally accurate: gold has outperformed Bitcoin in recent months. However, the context shows the move reflects macro safe‑haven demand and episodic liquidity pressures on BTC rather than a permanent repudiation of Bitcoin’s role. COINOTAG recommends that investors consider both assets’ differing risk profiles and maintain a disciplined, data‑driven approach as markets evolve.

Sources (plain text): X; TradingView; BullionVault; Newhedge.