Schiff Claims Bitcoin in Stealth Bear Market vs Gold

Just days before the anticipated Bitcoin halving, renowned Bitcoin critic Peter Schiff has reiterated his sceptical stance on the cryptocurrency, particularly in contrast to gold. Schiff, the founder of Euro Pacific Capital, declared that Bitcoin is experiencing a “stealth bear market,” evident when measured against gold—a commodity he deems “real money.”

Schiff shared on his Twitter that Bitcoin’s value is notably down, trading below 27 ounces of gold and has declined over 27% since reaching its peak of 37 ounces two and a half years ago. “Given all the hype about Bitcoin and the lack of coverage of gold, few likely realize Bitcoin is in a stealth bear market when priced in real money,” he tweeted.

In his podcast, Schiff detailed that Bitcoin’s current price is equivalent to about 18.6 ounces of gold, significantly lower than its high of 27 ounces from years past. Despite various market excitements and the introduction of Bitcoin ETFs, Schiff pointed out that Bitcoin has failed to establish a new high in terms of gold value, and he doubts it ever will.

At present, Bitcoin is priced at $62,946, maintaining a position above $60,000 since late February. While it has not revisited its all-time high of $73,000 set last March, it still shows a year-to-date increase of over 43%.

Contrastingly, gold has seen a substantial upsurge this year, increasing by 17% in 2024 and recently setting a new all-time high after four consecutive weeks of gains.

Schiff, who famously asserted that “Bitcoin will never hit $50K” back in August 2019, had to swallow his words as Bitcoin not only reached but surpassed that milestone within less than two years. Despite these fluctuations, Schiff enjoys his role as a Bitcoin sceptic and staunch advocate for gold, frequently engaging in public debates to defend his investment preferences.

Interestingly, after a debate with Anthony Pompliano, Schiff experienced an influx of Bitcoin into his digital wallet, although he later lost access to it. Schiff’s confrontations have not just been limited to seasoned investors; he even challenged his own son’s investment choices through a public poll, which his son won decisively.

Schiff has also engaged with AI to evaluate investment options and humorously noted that it favoured gold over Bitcoin, aligning with his views.

As the Bitcoin community and investors await the halving, there’s a mix of anticipation and caution, reflecting on historical trends that usually see a price surge post-halving, following an initial dip.