Schiff: Bitcoin Underperforms as Investors Flee to Hard Assets

• Gold and silver rally sharply as the dollar slides and market stress deepens

• Schiff says Bitcoin lags as capital shifts toward traditional hard assets

• Bitcoin has loses over half its value against gold since late 2021

Gold surged to $4,967 per ounce, while Bitcoin traded near $89,234, reflecting a sharp shift toward hard assets. At the same time, silver climbed to $99.24, and the dollar index fell to 98.37. Together, these moves highlighted growing pressure across currency and digital asset markets.

Analysts noted that gold and silver reached record highs during broad market uncertainty. Bitcoin declined 0.6% on the day and remained nearly 30% below its prior peak. As a result, Peter Schiff argued that capital continued shifting away from digital assets toward traditional stores of value.

Schiff emphasized that financial stress now favored tangible assets over speculative alternatives. Therefore, he framed gold and silver as primary beneficiaries of weakening currency confidence. Consequently, Bitcoin faced renewed scrutiny regarding its role during periods of monetary strain.

Precious Metals Extend Record Rally

Gold climbed to $4,967 per ounce as traders responded to persistent dollar weakness and rising debt concerns. Meanwhile, silver advanced to $99.24, also marking a historic peak. Together, these gains reinforced the appeal of precious metals during uncertain economic conditions. The U.S. Dollar Index dropped to 98.37, reflecting a weekly decline near 1%.As the dollar weakened, market participants increasingly favored hard assets for value preservation. This shift supported sustained momentum across gold and silver markets.

In addition, Schiff argued that elevated metal prices signaled deep structural challenges across global financial systems. He linked rising government debt and expanding deficits to growing currency pressure. Therefore, he viewed precious metals as essential hedges against prolonged monetary instability.

Bitcoin Underperforms Against Gold

Bitcoin traded near $89,234, down 0.6% on the day and well below its previous high. Although digital assets remained volatile, Bitcoin failed to match precious metal gains. As a result, Schiff described its performance as increasingly uncompetitive during monetary stress.

Bitcoin’s value against gold rather than fiat currencies. He calculated that Bitcoin lost more than 50% of its value relative to gold since November 2021. This decline revealed prolonged erosion in purchasing power, despite nominal dollar price stability.

Schiff argued that opportunity costs posed the greatest risk for long-term Bitcoin holders. He suggested that capital locked in Bitcoin missed substantial gains available in precious metals. Therefore, he viewed this performance gap as increasingly difficult to ignore.

Doubts Grow Over Digital Gold Narrative

Schiff also questioned Bitcoin’s long-standing claim as digital gold. He noted that Bitcoin failed to mirror gold’s recent rally during heightened monetary pressure. Consequently, he argued that this divergence undermined Bitcoin’s credibility as a defensive asset.

Furthermore, Schiff acknowledged Bitcoin’s strong early performance during limited adoption phases. However, he linked declining relative returns to broader institutional participation. This transition, he said, diluted the asset’s growth potential and altered its market dynamics.

He warned that extended underperformance could trigger sharper corrections across digital markets. At the same time, he interpreted rising metal prices as indicators of deeper fiscal stress. He reaffirmed his stance that gold and silver offer superior protection during economic uncertainty.