Peter Schiff slams Bitcoin’s ‘dismal performance’ against gold: ‘Just 2% above…’

Key TakeawaysBitcoin’s recent pullback has sparked renewed criticism from Peter Schiff, although supporters point to long-term gains and a sharp rise in the BTC-to-gold ratio.Bitcoin [BTC]’s recent pullback from its all-time high has reignited familiar criticism from long-time skeptic Peter Schiff. After peaking at $124,500, the world’s largest cryptocurrency has slipped below the $120,000 threshold, prompting Schiff to highlight its underperformance compared to gold. His remarks came as the precious metal notched a new record above $3,586.In fact, as per data from CoinMarketCap, gold has soared over 36% since the start of the year and 42% in the past twelve months, while Bitcoin has shed more than 5% over the last month.Peter Schiff weighs inUtilizing this opportunity, Schiff took to X and noted,“Priced in gold, since hitting a high of about 37.2 ounces on Aug. 12, Bitcoin is down 18%, just 2% above official bear market territory.”Adding further intrigue, he said,“In fact, priced in gold, Bitcoin is currently almost 16% below its Nov. 2021 high. How do you square this dismal performance with all the hype?”Schiff argued that Bitcoin’s decline further proves its inability to rival gold as a dependable store of value. However, not everyone agreed with his stance.Community dismisses Schiff’s remarksResponding on X, a user named Adam Well challenged Schiff’s view, pushing back against the notion that gold’s rise automatically undermines Bitcoin’s long-term potential.“Gold is yesterday’s hedge. Bitcoin is tomorrow’s system. Short-term volatility doesn’t erase a generational shift.”Echoing similar sentiments, another X user, Brandon, added,“You’re right- this cycle’s bull market has barely even begun.”Some users even went a step further, attempting to shift Schiff’s perspective and pointed out,Source: Yohann/XBitcoin’s performanceNow, while Schiff’s criticism has fueled debate, Bitcoin’s broader performance metrics paint a more nuanced picture. Despite recent pullbacks, the cryptocurrency has delivered substantial returns over longer time frames as it is up 18% year-to-date, 36% over the past six months, and an impressive 96% gain in the past year. Stretching further back, Bitcoin has surged nearly 1,000% in five years, highlighting its long-term growth potential even amid short-term volatility.That said, Schiff’s concerns about Bitcoin’s ability to compete with gold as a “safe haven” are not without context. Gold’s rally has overshadowed Bitcoin in recent weeks, raising questions about which asset investors trust more during uncertain market conditions.Bitcoin/Gold ratio analysisHowever, a closer look at the Bitcoin-to-gold ratio offers a counterpoint. Data from CoinMarketCap shows the BTC/Gold ratio climbed to $0.8359 after a 64.53% jump in just 24 hours. This sharp move suggests that Bitcoin’s value relative to gold has strengthened significantly, reflecting heightened momentum in the crypto market. Such a spike indicates shifting investor sentiment, where Bitcoin may be increasingly viewed as a competitive alternative to the traditionally stable precious metal.In fact, Analyst Ted Pillows had also noted that the market appears to be in its second phase, with gold extending its rally while Bitcoin undergoes retracements. Historically, such cycles have shown that once gold reaches its peak, Bitcoin often takes the lead with sharp upward moves. For now, though, short-term rallies in BTC may remain vulnerable to pullbacks. Still, with gold’s momentum intact and Bitcoin consolidating, many believe the stage is being set for a potentially explosive breakout once market conditions shift.