Bitcoin’s recent drop below $90,000 has added to the growing anxiety in the market.
With investors already on edge, vocal Bitcoin critic Peter Schiff has used the moment to argue that the “digital gold” narrative is falling apart, sparking fresh debate.
Bitcoin Down 40% Against Gold
Schiff points out that Bitcoin is now down 28.5% from its recent high. But more significantly, he argues that Bitcoin has fallen roughly 40% when priced in gold, with gold still trading above $4,000.
Since Bitcoin has crashed far harder than gold, Schiff argues that the whole “digital gold” story has been exposed as fraud. “Bitcoin’s collapse relative to gold exposes the digital-gold hype as a fraud. Those who bought into it will sell,” he said.
Users were quick to criticize his comments. One user argued that although the dip was brutal, calling it “not digital gold” because it’s volatile is missing the point. Bitcoin was never meant to be stable, it is promised to be scarce and unseizable. So while gold has seen a strong 2025 performance, this does not mean Bitcoin’s long-term outlook is finished.
Gold Surges Over 55%
Gold has hit a series of new all-time highs this year, climbing over $4,300 per ounce in October. In 2025 alone, gold is up more than 55%. On the other hand, Bitcoin has faced massive volatility recently and is currently trading around $91K, with just a 1% gain for the year.
Schiff Calls Bitcoin A “Modern Day Tulip”
Schiff also said that the analysts at CNBC and their guests are “at a loss” to explain Bitcoin’s recent drop. “Their confusion results from not recognizing that Bitcoin is just a modern-day tulip,” he said. Users pushed back noting that he has been making the same claim since Bitcoin was $100.
One user explained that Bitcoin’s drop had real macro reasons behind it. The liquidity is tightening, leverage was extreme, Treasury issuance pulled huge money out of the system, funding markets were stressed, and ETF flows were unable to counter broader economic pressure.
He notes that gold reacts to current conditions while Bitcoin reacts to future liquidity. But once the conditions improve and money flows back into markets, Bitcoin will likely rebound and lead again.
Downturn Nearing Its End
Analysts at The Kobeissi Letter note that Bitcoin has gone through many major drops before, including multiple crashes of 25%, 50%, and even 75%. And every time, it has eventually climbed up to make new all-time highs.
Several analysts note that the current sell-off is just another typical crypto downturn, likely closer to ending than beginning.
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