Bitcoin has surged to a fresh all-time high of $126,198, pushing its market capitalization past $2.5 trillion. Yet, while the cryptocurrency enjoys renewed investor interest and bullish sentiment, veteran gold advocate and economist Peter Schiff cautions that Bitcoin’s rally still lags behind gold’s meteoric rise.
Gold recently hit record highs of $4,000 per ounce, and according to Schiff, Bitcoin would need to climb to $148,000 to match its previous peak relative to the yellow metal. This comparison highlights a divergence between the two major stores of value and raises questions about the sustainability of Bitcoin’s current rally.
Over the past few weeks, Bitcoin has exhibited impressive momentum. The leading cryptocurrency’s price growth has been fueled by several factors, including expectations of another Federal Reserve rate cut, institutional adoption, and renewed interest from retail investors.
Despite the optimism, Schiff refers to Bitcoin’s recent rally as a “bear market rebound.” In his view, while BTC’s price has risen sharply, it remains in a broader bear market when measured against gold. Schiff notes that the cryptocurrency’s gains are still about 15% below its all-time highs in gold-equivalent terms, underscoring the persistent strength of the gold market.
Bitcoin’s market capitalization now exceeds $2.5 trillion, and the asset continues to attract attention from institutional investors. Yet, in Schiff’s analysis, the short-term rally may not reflect a shift in fundamental market dominance, but rather a temporary correction or rebound within a longer-term downtrend.
Gold’s price recently surpassed $4,000 per ounce, making it one of the strongest performing assets in 2025. Schiff argues that gold’s continued ascent demonstrates the persistent demand for hard assets amid macroeconomic uncertainty and ongoing concerns about inflation and central bank policy.
The rally in gold has positioned it as a $27 trillion asset class, dwarfing Bitcoin’s market cap. Schiff believes that while BTC can experience price spikes, gold’s long-term stability and risk-adjusted performance make it the benchmark against which cryptocurrencies should be measured.
Recent data from Ecoinometrics reveals that both Bitcoin and gold have been top performers among major asset classes over the past two years. Bitcoin leads in total returns, reflecting its explosive growth and strong investor appetite, while gold maintains the edge in risk-adjusted returns, providing a more stable store of value.
Schiff emphasizes that investors should take note of this distinction. While Bitcoin offers significant upside potential, its volatility remains far higher than gold’s. This characteristic can amplify both gains and losses, making it a more speculative asset compared to the yellow metal.
The current crypto rally has also been bolstered by institutional participation. Large investors and hedge funds have increasingly added Bitcoin to their portfolios, viewing it as a hedge against inflation and a potential store of value. Analysts suggest that this institutional interest is one reason Bitcoin’s price has surged past $125,000.
However, Schiff warns that despite these inflows, Bitcoin’s performance remains tethered to gold’s relative strength. He argues that the cryptocurrency must hit $148,000 to achieve parity with gold’s rally, reflecting the ongoing influence of macroeconomic factors and the gold market’s dominance.
Peter Schiff frequently highlights the influence of central bank policy on asset prices. He asserts that the Federal Reserve’s current approach—low interest rates and an accommodative stance—is fueling speculative rallies in both gold and Bitcoin. Schiff argues that if the Fed does not reverse course, market imbalances may persist, potentially creating volatility in riskier assets like Bitcoin.
Schiff’s criticism suggests that even as Bitcoin experiences a surge, systemic risks remain. Investors should remain cautious and consider the broader macroeconomic context when evaluating the sustainability of crypto rallies.
While Schiff maintains a bearish stance relative to gold, other market participants are more optimistic about Bitcoin’s near-term potential. Analysts believe that the cryptocurrency could reach $150,000 by the end of 2025 if momentum continues and institutional adoption grows.
The next leg of Bitcoin’s rally may depend on several factors, including broader adoption, regulatory clarity, and market sentiment. ETF approvals and new institutional investment vehicles could also provide catalysts for further growth, though the risk of volatility remains high.
Ultimately, the debate between Bitcoin and gold reflects a broader question about risk, reward, and store-of-value preferences. Bitcoin offers rapid growth potential but carries high volatility, while gold provides stability and consistent long-term returns.
Schiff’s perspective serves as a reminder that, despite Bitcoin’s recent gains, traditional safe-haven assets like gold still play a crucial role in diversified investment portfolios. Investors weighing their options must consider not only potential returns but also the risk-adjusted performance of each asset class.
Bitcoin’s rally to $126,198 is impressive, but as Peter Schiff points out, it still trails gold’s meteoric rise. For Bitcoin to truly match gold’s performance, it would need to climb to $148,000, highlighting the divergence between these two major stores of value.
As 2025 progresses, investors will continue to monitor both Bitcoin and gold for signs of strength and potential corrections. While BTC offers exciting growth prospects, gold’s stability ensures it remains a benchmark for long-term value preservation. The coming months will test whether Bitcoin can close the gap and achieve parity with its historic rival, or whether gold will maintain its edge as the premier safe-haven asset.
Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
Get the latest Crypto & Blockchain News in your inbox.
Join Now