Crypto Journalist
Amin Ayan
Crypto Journalist
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Bitcoin’s value relative to gold has slipped close to levels last seen nearly a decade ago, reigniting debate over the cryptocurrency’s long-term performance as a store of value.
Key Takeaways:
- Bitcoin’s value against gold has fallen near 2017 levels, reviving doubts about its role as a long-term store of value.
- Peter Schiff says gold and silver have outperformed Bitcoin as investors seek safety.
- Analysts note shifting investor behavior as demand grows for assets outside government control.
Economist and long-time crypto critic Peter Schiff said Bitcoin is now worth about 15.5 ounces of gold, down 57% from its 2021 peak and only around 10% above its 2017 high when measured against the precious metal.
In a post on X, Schiff argued that despite years of promotion and growing acceptance on Wall Street, Bitcoin has failed to outperform traditional safe havens.
Schiff Says Gold and Silver Outshine Bitcoin as Safe Havens
He said most current holders would have been better off owning gold or silver instead, pointing to strong gains in precious metals over the same period.
Schiff’s comments come as gold and silver continue to attract inflows amid geopolitical tensions and uncertainty over interest rate policy, while Bitcoin has struggled to regain momentum after recent pullbacks.
“Most people who now own Bitcoin would have been better off buying gold or silver instead,” he wrote.
As reported, Bitwise Chief Investment Officer Matt Hougan has said that gold’s surge past $5,000 an ounce and mounting uncertainty around US crypto legislation are shaping a critical moment for digital asset markets.
Hougan said the combination of rising demand for assets outside government control and fading confidence in near-term regulatory clarity could influence both crypto adoption and price action in the months ahead.
Hougan pointed out that roughly half of gold’s dollar-denominated value has been created in just the past 20 months, despite its thousands-of-years-long history as a store of value.
He argued the move reflects the long-term effects of expansive monetary policy, rising debt levels, and currency debasement, but also a deeper shift in investor behavior.
“It shows that people no longer want to keep all of their wealth in a format that relies on the good graces of others,” Hougan wrote.
He also flagged growing uncertainty around the Clarity Act, legislation aimed at cementing a pro-crypto regulatory framework in the US.
Bitcoin Slides as Fed Caution, Geopolitics Sap Risk Appetite
Bitcoin has fallen back below $89,000 after a short-lived rebound, pressured by tighter financial conditions and rising geopolitical stress that have weighed on risk assets.
According to XS.com analyst Samer Hasn, a Federal Reserve stance that remains neutral to hawkish, combined with tensions in the Middle East, has reduced demand for speculative investments across crypto markets.
Market data points to weakening conviction among traders. CoinGlass figures show crypto futures open interest is down 42% from record highs, with attempted breakouts quickly reversed by sharp sell-offs.
At the same time, capital has rotated toward traditional havens such as gold and silver, leaving digital assets struggling to attract fresh inflows as volatility persists.
With Federal Reserve Chair Jerome Powell signaling little urgency to cut rates and geopolitical risks pushing investors toward tangible assets, analysts say Bitcoin remains a higher-risk trade until either policy eases or global tensions cool.
