Bitcoin reached an all-time high of about $109,071 in January but has since dropped nearly 25%, now settling around $80,000. This sharp fluctuation, along with movements in gold and the S&P 500, reflects the unpredictability of today’s financial markets.
Bitcoin critic Peter Schiff pointed out that while the S&P 500 has only fallen 4% in 2025, it has actually dropped 18% when measured in gold—bringing it close to bear market territory.
According to Schiff, pricing stocks in gold gives a clearer picture of inflation because gold holds its value over time. He highlighted that since December 31, 2000, the S&P 500 has lost 60% of its value when measured in gold, showing a long-term decline.
In response, an analyst argued that gold is no longer widely used for purchases, making it an impractical way to measure value. Schiff disagreed, saying tokenized gold makes transactions easier, even more so than Bitcoin. He insisted that gold is still “real money,” though mainly used by central banks today.
Another X user questioned Schiff’s reasoning, noting that despite his long-standing method of measuring stocks in gold, equities continue to hit record highs while gold lags behind Bitcoin. The user suggested it might be time for a new benchmark.
However, Schiff dismissed this argument, claiming stocks aren’t really reaching new highs when measured in gold and maintaining that Bitcoin is irrelevant.
Schiff also warned that rising prices are a result of governments devaluing fiat currencies through inflation. When asked if he supports a return to the gold standard, he replied, “Of course.” He also believes gold hitting $4,000 this year is not just possible but highly likely.
Previously, Schiff cautioned that a major Nasdaq downturn could cause Bitcoin to crash. He pointed out that past bear markets saw steep Nasdaq declines, and if it drops 40%, Bitcoin could fall to $20,000 or lower. With the Nasdaq already down 12%, Schiff predicts that if it falls 20%, Bitcoin could drop to around $65,000.
Gold has hit a new all-time high, rising above $3,025 per ounce, gaining 15% since the start of the year. Meanwhile, Bitcoin (BTC) is down 10% year-to-date. Gold’s rally is fueled by strong inflows into gold ETFs and its status as a safe-haven asset amid global uncertainty. Discussions about new tariffs in the U.S. under President Trump have also increased demand for U.S. equities. Over the past year, gold has surged 40%, far outpacing Bitcoin’s 16% gain.
Historically, when gold enters a bull market, Bitcoin often struggles. In 2019-2020, gold led the rally before Bitcoin surged in late 2020. Both assets faced pressure in 2022 but rebounded in 2023-2024. Now, in 2025, they appear to be moving in different directions again. Charlie Morris of ByteTree calls this a “proper gold rush,” comparing it to 2011 – when Bitcoin was just emerging.
Gold is shining, Bitcoin is stumbling, and the markets are as unpredictable as ever – just another day in 2025.
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