Gold Hits Record High as Bitcoin Slides
Gold surged to an all-time high of $3,000 per ounce, driven by growing fears of recession and escalating U.S. trade tensions. Meanwhile, Bitcoin has dropped to $78,500, highlighting a stark divergence between the two assets. Investors are turning to gold as a safe-haven asset during turbulent times.
The precious metal’s 14% year-to-date gain contrasts sharply with Bitcoin’s recent struggles. This divergence fuels the ongoing debate about which asset is the ultimate hedge against inflation — gold or Bitcoin.
Peter Schiff: “Gold Is the Apex Predator”
Gold advocate Peter Schiff reignited his critique of Bitcoin, asserting that gold is the dominant store of value. He pointed out that Bitcoin has lost purchasing power when measured against gold.
“At its 2021 peak, one Bitcoin could buy 36.3 ounces of gold,” Schiff wrote on X. “Now it buys just 27.7 — a 24% decline.” According to Schiff, this trend suggests that Bitcoin has quietly entered a bear market when valued in gold terms.
Inflation Hedge Debate: Gold vs. Bitcoin
The comparison between gold and Bitcoin as inflation hedges continues to stir debate. Schiff dismissed the idea that Bitcoin can be considered “digital gold.” He argues that Bitcoin is more correlated to the NASDAQ than to gold, and lacks key financial fundamentals.
“Bitcoin is a digital stock, not digital gold,” Schiff said. “It doesn’t pay dividends or produce earnings. So, what’s it really worth?” This correlation with risk assets weakens Bitcoin’s status as a true hedge, he added.
Strategic Bitcoin Reserve? Schiff Says No
Schiff also mocked recent proposals to establish a U.S. Strategic Bitcoin Reserve. He questioned the logic behind such an initiative, especially given the government’s lack of intent to buy more Bitcoin.
“If the U.S. won’t buy Bitcoin, why should anyone else?” Schiff said, suggesting the move is more about crypto lobbying than sound policy. He argued that other nations won’t follow America’s lead, regardless of the hype.
Gold Shines Amid Economic Uncertainty
With inflationary pressures and trade policy instability, gold has reasserted its role as a reliable store of value. Investors are flocking to gold due to its historical reputation for preserving wealth during economic downturns.
“Gold thrives in uncertainty,” said one analyst at Saxo Markets. “It’s outperforming riskier assets like Bitcoin, especially as global growth slows.”
Bitcoin Stalls Despite Recent Crypto Adoption
While some governments and institutions continue to explore Bitcoin, the flagship cryptocurrency is failing to maintain momentum. Traders are now cautious, as Bitcoin has pulled back nearly 30% from its all-time high of over $109,000.
Without strong new catalysts, Bitcoin near-term outlook remains cloudy. Meanwhile, gold’s momentum continues to attract traditional and institutional investors alike.