Key takeaways
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Schiff maintains that Bitcoin is in a long-term bear market when trading in gold.
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Gold’s rally above $5,000 has reinforced the narrative shift towards real assets.
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Schiff also criticized US political support for cryptocurrencies.
Peter Schiff has renewed the debate over whether Bitcoin has entered a prolonged bear market with gold prices, as the price of Bitcoin continued to plummet and gold rebounded sharply.
Bitcoin critic Schiff also argued that China was “too smart” to get involved with Bitcoin, rejecting recent comments from President Donald Trump.
Schiff highlighted Bitcoin’s performance when trading in gold instead of US dollars, stating that it has entered a bear market.
“That didn’t take long. Gold is already back above $5,000,” Schiff wrote in a post on X on Wednesday.
“Bitcoin is in a long-term bear market with a gold price,” he added.
In a follow-up post, Schiff defended his methodology for valuing Bitcoin against the precious metal.
“Well, gold is real money and Bitcoin is supposed to be digital gold,” he wrote. “So pricing it in gold makes more sense.”
Bitcoin proponents typically measure gains in dollar terms. Schiff, however, has repeatedly argued that gold-adjusted prices offer a clearer picture of purchasing power and long-term value.
In addition to claiming that there is a Bitcoin bear market, Schiff also used the moment to criticize political support for cryptocurrencies in the United States, contrasting it with China’s focus on industrial investment and gold accumulation.
“Trump says he believes in cryptocurrencies and wants to make the United States the Bitcoin capital of the world because if we don’t, China will,” Schiff wrote.
China has steadily increased its official gold reserves in recent years, while maintaining strict controls on cryptocurrency trading and mining.
On Monday, Trump said: “…I’m a big crypto person. I’m the one who probably helped cryptocurrencies more than anyone else because I believe in them.”
“If we don’t do it, then China will do it. Right? If we don’t do cryptocurrency, then China will do it. And it’s like AI. We’re leading AI by a lot.
“And if we weren’t leading, China would have led. They’re very capable. They’re very good.”