Popular gold advocate Peter Schiff has criticized Bitcoin’s weakness against gold, calling it near bear market territory. Gold hit a new record above $3,586, highlighting his point.
Gold’s Record High Contrasts With Bitcoin’s Volatile Performance
Schiff noted that Bitcoin priced in gold has dropped 18% since August 12, when it peaked at 37.2 ounces. The decline leaves it just 2% above official bear market territory. Compared with its November 2021 ratio, Bitcoin is still nearly 16% lower.
This further reinforces his argument that the cryptocurrency cannot compete with the precious metal as a reliable store of value. Previously, Peter Schiff stated that he would pick Bitcoin over Ethereum, if it becomes necessary to make a choice.
Gold’s latest performance adds weight to Schiff’s position. TradingView data shows that the precious metal has surged past $3,586, marking a fresh all-time high. Gold has gained more than 36% year-to-date and 42% over the past twelve months.
It climbed more than 23% in the past six months alone. In five years, the price has risen more than 85%, indicating it can maintain consistent growth through cycles. This stability has further confirmed gold as the ultimate safe haven asset.
Bitcoin, meanwhile, delivered mixed results. The cryptocurrency trades near $110,160, down 0.46% in the past day and more than 4% lower over the past month.
Bitcoin is up 18% year to date and 36% in six months, even though it has recorded losses over the short term. Its one-year gain is over 96% and its five-year gain is almost 1,000%. All these figures suggest huge upside potential for Bitcoin over the long haul. However, its recent underperformance in gold terms (as shared by Schiff) create a cause for doubts about its safe haven status.
The chart shows Bitcoin’s sharp intraday decline, highlighting volatilityBitcoin Faces Structural Risks and Market Vulnerability Warns McGlone
Adding to the criticism, Bloomberg Intelligence analyst Mike McGlone compared Bitcoin’s chart patterns to Dogecoin, highlighting structural weakness. He argued that most commodities fall after sharp rallies, and Bitcoin may be following the same cycle.
McGlone noted that Bitcoin’s capped supply of 21 million coins does not insulate it from broader risks, as competing cryptocurrencies have grown massively since 2009. This view aligns with earlier debates on where the price of Bitcoin could head if gold continues its surge.
According to McGlone, if the U.S. stock market declines, the cryptocurrency market could “lose a zero” faster than they have gained one since 2020. He frames Bitcoin as vulnerable to macroeconomic shocks because of its relationship with risk assets.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Source: https://coingape.com/peter-schiff-criticizes-bitcoins-performance-following-golds-rally/
