Bitcoin (CRYPTO: BTC) underperforming against gold has prompted its prominent critic Peter Schiff to highlight the divergence.
What Happened: In a post on X on Wednesday, Schiff noted that many Bitcoin advocates expect gold's record-breaking rally to trigger a similar surge in BTC, arguing that the two assets move in tandem as alternative stores of value.
However, Schiff warned that Bitcoin's inability to rise alongside gold signals weakness rather than latent potential.
Instead of a delayed breakout, he predicts a "belated bust", marking the end of Bitcoin's speculative phase: “the party is over,” Schiff wrote.
On Oct 14, Schiff projected that if Nasdaq futures decline 7.5%, the index would enter correction territory, which is over 10% below recent highs.
In that scenario, Bitcoin could fall at least 15%, slipping below $95,000, with the next major support zone around $75,000.
Also Read: Bitcoin, Ethereum Crash Was A Blip, Not A Fundamental Shift, Bitwise’s Matt Hougan Says
Why It Matters: Schiff also analyzed broader markets, citing Treasury Secretary Scott Bessent's bullish view on China's economic pivot toward wealthier global customers as upside potential.
Schiff argued that while Bessent dismisses gold's rise and praises Alan Greenspan's low interest rates, Greenspan's easy monetary policy was a key driver of the 2008 financial crisis.
Schiff warned that the next dollar crisis could be significantly more severe.
After Bitcoin's bounce from the crypto market's largest liquidation event, Schiff criticized Bitcoin’s volatility and emphasized safer, more stable assets like gold and silver, which are delivering strong returns.
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