Gold and Bitcoin Show Diverging Trends Amid Market Turbulence: Peter Schiff Reiterates Bitcoin Is Not Digital Gold
In the midst of global financial market volatility, two frequently compared assets — gold and Bitcoin — have once again moved in opposite directions. According to a recent report by Foresight News, veteran economist and long-time gold advocate Peter Schiff reiterated that Bitcoin is not a safe-haven asset like gold. Schiff noted a sell-off in U.S. stock futures and the dollar, while gold rose by around 1% and Bitcoin dropped by approximately 2%.
This stark contrast has reignited the long-standing debate: Can Bitcoin truly be considered “digital gold”?
Market Pressure Returns
Global financial markets are once again under pressure. Persistent inflation, concerns over a potential economic slowdown in the U.S., geopolitical tensions, and the possibility of further monetary tightening from the Federal Reserve have pushed investors to adopt more defensive strategies.
Major U.S. stock indices, including S&P 500 futures and Nasdaq futures, have weakened in recent sessions, accompanied by a softening U.S. dollar. In such an environment, investors typically turn to safe-haven assets to protect their capital.
However, what’s particularly notable in the current environment is how gold and Bitcoin have moved in completely different directions — and this is where Peter Schiff’s analysis gains renewed relevance.
Gold Rises, Bitcoin Falls: Two Different Realms
Schiff emphasized that gold, as a traditional safe-haven asset, once again demonstrated its reliability. With a modest gain of around 1%, gold proved that investors still trust it to preserve value during times of uncertainty.
Meanwhile, Bitcoin — widely promoted as “digital gold” by crypto enthusiasts — fell by about 2%. According to Schiff, this market reaction is further evidence that Bitcoin behaves more like a speculative risk asset than a store of value.
“Bitcoin is not digital gold,” Schiff said. “When investors panic, they don’t flock to Bitcoin. They turn to gold — as they always have.”
This is far from Schiff’s first criticism of Bitcoin. He has consistently argued that Bitcoin’s price movements are too volatile and closely tied to risk sentiment, making it more comparable to tech stocks than to gold.
The Digital Gold Narrative: Hope vs. Reality
Over the years, the idea of Bitcoin as digital gold has become one of the most powerful narratives in the crypto space. Proponents point to Bitcoin’s capped supply of 21 million, its decentralized nature, and its resistance to inflationary monetary policy.
In theory, these characteristics should make Bitcoin an ideal hedge.
In practice, however, Bitcoin’s behavior in times of crisis often tells a different story:
• During the COVID-19 crash in March 2020, Bitcoin plunged alongside equities.
• In 2022, as inflation surged globally, Bitcoin suffered major losses.
• And now, amid falling equities and a weakening dollar, Bitcoin once again drops.
This trend suggests that Bitcoin is still perceived by the market as a high-risk, high-volatility asset, more akin to growth stocks than a safe haven.
Why Gold Still Dominates
There are solid reasons why gold continues to be seen as the ultimate safe-haven asset:
1. Proven Track Record: Gold has been a store of value for thousands of years, from ancient civilizations to modern central banks.
2. Relative Stability: Gold’s price tends to be far more stable than Bitcoin’s, especially during market turmoil.
3. Regulatory Clarity and Liquidity: Gold markets are highly liquid and operate under well-established regulatory frameworks worldwide.
Schiff argues that gold is not just a hedge — it’s a symbol of trust. When faith in the financial system wavers, gold becomes the final currency.
Bitcoin: The Asset of the Future or Just Another Speculation?
On the other side, Bitcoin has clear technological advantages and appeals to a new generation of investors. It’s accessible, transparent, and borderless. In some cases — such as in countries with hyperinflation or strict capital controls — Bitcoin provides a real alternative to traditional finance.
But its main problem remains volatility.
Bitcoin can surge 10% in a day — but it can just as easily crash 15% the next. For long-term investors or institutions managing billions, this kind of volatility makes it difficult to rely on Bitcoin as a hedge.
Moreover, institutional adoption of Bitcoin is still heavily influenced by macroeconomic conditions and interest rate policies. When yields rise, capital tends to flow out of risk assets — including crypto — and into safer instruments.
Can Bitcoin Become Digital Gold in the Future?
While Schiff remains one of Bitcoin’s harshest critics, some analysts continue to believe in the long-term potential of Bitcoin as a store of value — just not yet.
To rival gold’s status, Bitcoin would need to:
• Achieve greater price stability through deeper liquidity,
• See wider adoption, especially by governments and major institutions,
• Gain regulatory clarity and broader public trust.
Some progress is underway — the approval of Bitcoin spot ETFs in the U.S., increased involvement by traditional finance players, and growing user adoption globally. However, the road to becoming true “digital gold” is still long and uncertain.
Conclusion: Market Reality Doesn’t Lie
This latest divergence between gold and Bitcoin is a reality check for investors and analysts alike. No matter how compelling the digital gold narrative may sound, real-world price behavior matters more.
Gold rises when markets fall. Bitcoin drops when risk increases.
For now, investors seeking stability and protection of capital still trust gold. Bitcoin, while promising, remains speculative — a vehicle for growth, not defense.
Peter Schiff, despite being a controversial figure in the crypto world, is merely pointing out what the charts already show: Bitcoin hasn’t replaced gold — at least not yet.
Whether that changes in the future will depend on how Bitcoin evolves — in technology, adoption, regulation, and perception. But at this moment, as markets wobble and uncertainty looms, gold continues to reign supreme.