Economist Peter Schiff renews attacks on Bitcoin, claiming its latest crash exposes the myth of “digital gold” amid rising gold prices.
Long-term Bitcoin critic Peter Schiff is at it again, this time challenging the cryptocurrency’s narrative as ‘digital gold.’
This follows the asset’s recent dip that was triggered by increased geopolitical tensions and aggressive tariff announcements from the U.S. administration.
Schiff Says Bitcoin Crash Is a “Warning”
In an October 14 X post, the economist dismissed the belief that Bitcoin’s recent flash crash was a buying opportunity, framing it instead as a sign of deeper instability.
“The Friday Bitcoin flash crash wasn’t a buying opportunity but a warning,” Schiff wrote, adding that the next time its price falls, even a post from President Trump might not be enough to help it recover.
Schiff believes that its metal counterpart’s surge exposes the “fiction” of Bitcoin as digital gold, suggesting that the cryptocurrency’s perceived role as a safe-haven asset is unraveling. “The bottom can drop out of Bitcoin at any time,” he added.
Bitcoin recently experienced a sharp correction that dragged it to a low of $110,201 on October 10. On the other hand, gold has continued setting fresh highs this year, crossing the $4100 mark.
In a separate post, the financial commentator doubled down on his position, stating that gold and silver continue to surge while Bitcoin and Ethereum keep declining. He warned that crypto investors are in for a rude awakening and will soon learn a valuable but costly lesson.
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His latest remarks follow weeks of commentary claiming that Bitcoin’s underperformance against the precious metal is a warning that the cryptocurrency is in a deeper bear market. The gold advocate went as far as predicting that the leading digital currency will soon crash.
BTC Price Outlook
Bitcoin’s brief rebound on Monday has since faded, with the cryptocurrency now trading around $111,800. This marks a nearly 10% drop in the past week and over 11% below its record high above $126,000 that it hit in August.
The decline follows last week’s market crash, which led to a rise in bearish trading and an increase in put options expiring at the end of October, according to Hendrik Ghys, founder of Thalex Global.
Ghys said that market volatility has eased to around 40 percent in the short term, showing that the panic has cooled as traders adjust their risk. Market makers who buy during dips and sell during rallies remain cautiously hopeful, expecting to manage their positions more effectively if volatility continues to fall.
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