Bitcoin's Digital Gold Narrative Is "Crumbling Fast": Peter Schiff

Longtime Bitcoin critic Peter Schiff has reignited his criticism of the flagship cryptocurrency, arguing that Bitcoin is deep in a "major bear market".

Longtime Bitcoin critic Peter Schiff has renewed his attack on the flagship cryptocurrency, claiming that Bitcoin is deep in a “major bear market” — especially when priced against gold.

In a recent post on X, Schiff highlighted that Bitcoin has underperformed gold dramatically since its all-time high in November 2021. He noted that despite a series of bullish catalysts, BTC has shed about 30% of its value relative to gold.

"Even with ETF approvals, MicroStrategy’s record leverage, the election of a Bitcoin president, and national reserves now holding BTC — the price in gold terms continues to fall," Schiff stated.

His comments follow new data from Saylortracker, showing that MicroStrategy’s recent Bitcoin buys are now in the red. The company’s major acquisition on March 31 — 22,048 BTC at an average price of $86,969 — is currently sitting at a 5.08% loss, equating to a $97 million hit.

Other purchases made in February and March have also declined, ranging from a 2% decrease for 130 BTC bought on March 17, which is barely breaking even, to a 15% decline for 1,000 BTC acquired on February 21.

Schiff further elaborated on his stance, arguing that Bitcoin is behaving less like gold and more like a speculative asset.

"If it were truly digital gold, wouldn’t it act more like gold?" he asked, highlighting Bitcoin’s correlation with risk-on assets. He compared Bitcoin's performance to that of penny stocks, questioning its suitability as a store of value or a reserve asset.

"As more investors begin to see through the hype, this narrative is crumbling fast," Schiff warned.

His remarks come at a time when Bitcoin continues to trade well below recent highs, despite increased institutional adoption and global interest in the cryptocurrency. It remains to be seen whether Schiff’s criticisms will influence market perception or not. However, his persistent voice continues to challenge Bitcoin’s core branding and position in the financial markets.