Veteran economist and outspoken Bitcoin critic Peter Schiff has reignited debate in the crypto world with a pointed observation: Bitcoin, when priced in gold, is now 20% below its August peak, signaling what he calls a “bear market”—not just in dollars, but in its very identity.
In a viral post on X (formerly Twitter), Schiff wrote:
“Bitcoin is not living up to its hype. Priced in gold, Bitcoin is now 20% below its record high set in August. In other words, Bitcoin is in a bear market. Since Bitcoin is promoted as being digital gold, being down 20% in gold is more significant than being down 10% in dollars.”
Bitcoin is not living up to its hype. Priced in gold, Bitcoin is now 20% below its record high set in August. In other words, Bitcoin is in a bear market. Since Bitcoin is promoted as being digital gold, being down 20% in gold is more significant than being down 10% in dollars.
— Peter Schiff (@PeterSchiff) September 23, 2025
The statement comes amid a broader divergence in asset performance. Gold has surged to record highs, buoyed by investor demand for safe havens following the Federal Reserve’s recent rate cut. Meanwhile, Bitcoin has struggled to maintain momentum, trading around $112,000 and facing resistance near $116,0002.
Schiff’s critique cuts deeper than price action—it challenges the very narrative that has fueled Bitcoin’s rise over the past decade. Often dubbed “digital gold,” Bitcoin has been promoted as a hedge against inflation and fiat instability. But Schiff argues that its underperformance against actual gold undermines that claim, especially during periods of economic uncertainty.
“If Bitcoin is truly digital gold, then it should outperform gold in times of monetary easing,” Schiff said in a follow-up interview. “Instead, it’s lagging behind while gold and silver rally.”
Crypto advocates have pushed back, noting that Bitcoin remains up over 18% year-to-date and has seen strong inflows into ETFs. But Schiff remains unconvinced, pointing to Bitcoin’s volatility and lack of intrinsic value.
The debate comes at a pivotal moment for digital assets. With altcoins gaining traction and institutional investors cautiously re-entering the market, Bitcoin’s role as a store of value is once again under scrutiny.
Whether Schiff’s gold-standard critique holds weight in the long run remains to be seen. But for now, his tweet has struck a nerve—and reopened a fundamental question: Is Bitcoin still the digital gold it claims to be?
