Peter Schiff Taunts Bitcoin With Over 40% Loss Against Gold

Schiff argues that Bitcoin’s price drop versus gold exposes the “digital gold” narrative as fraud and will ultimately push investors to sell.

Long-term Bitcoin critic Peter Schiff is back again, this time saying the flagship cryptocurrency’s latest dip is worse if it’s priced in gold.

He also predicts that BTC could give up all its gains before 2025 if the current trend continues.

BTC’s downturn is worse than it seems

Schiff claimed in a November 18 post on X that Bitcoin has lost 40% of its value compared to gold. He added that its decline against the metal exposes the “digital gold” hype as fraud. According to him, investors who believed in the story will eventually have to sell.

This comes after a major correction in BTC, which saw the price fall below $90,000 for the first time in seven months. On the other hand, gold is still trading above $4,000. Market analyst Charlie Bilello highlighted the magnitude of the pullback, showing that Bitcoin’s decline from a 52-week high is steeper than major tech stocks like Apple (-4%) and Nvidia (-12%), but not as severe as cryptocurrency stocks like Strategy (-64%) and Coinbase (-41%).

In March, one Bitcoin could buy about 33 ounces of gold, but by mid-November that number had dropped to just 22. It has given Schiff a lot of ammunition, with the economist repeatedly insist investors to “Sell Bitcoin now and buy gold before you get torn apart.” He didn’t stop there, challenging Strategy chairman Michael Saylor to a debate, claiming that his company’s business model is fundamentally flawed and will eventually be so. result in bankruptcy.

Despite the attack, Saylor has done so publicly defended Bitcoin’s volatility, confirming that his company’s strategy remains safe, even adding to the stock, buying $830 million worth of BTC after weeks of modest acquisitions.

Schiff warns that BTC may not recover

The gold advocate also warned that Bitcoin’s history of rebounding from every recession will keep many people holding on for years. Nevertheless, he suggested that assets may fall further this time instead of recovering, having previously highlighted that assets are already in a bear market.

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At the time of writing, the cryptocurrency was trading around $90,700, according to data from CoinGecko, down more than 5% in the past 24 hours and 28% below its all-time high in October when it topped $126,000.

Still, the crypto community on X has largely dismissed Schiff’s claims. One user countered that “a correction does not erase an asset’s long-term strength,” suggesting that Bitcoin has experienced declines of 30% to 50% in every cycle, even in years when it reached new all-time highs. They argued that the gold comparison lacks context because Bitcoin is a more reactive, emerging asset class, and that “short-term movements do not define long-term value.”

Others were simply just as challenging to report”I’ll buy more here. Thanks for the bottom signal.” At the same time, another noted that Bitcoin “has been declared dead over 400 times and is still outperforming any real time frame.”