Peter Schiff says the Bitcoin digital gold narrative has completely collapsed
Peter Schiff says the Bitcoin digital gold narrative has completely collapsed
Peter Schiff, a well-known gold bull, described the latest cryptocurrency market crash as “a signal of the complete collapse of Bitcoin’s narrative as digital gold.”
According to Yahoo Finance on February 6 (local time), chief economist Peter Schiff argued that Bitcoin’s recent plunge is not a mere correction but a precursor to a bursting bubble. Schiff pointed out that despite Bitcoin reaching a record high of $126,000 over the past year, it has lost more than 30% of its value while gold prices have surged by 65% over the same period. He claimed that “the widening gap between gold and Bitcoin prices is clear evidence that Bitcoin is failing to function as a safe haven or digital gold.”
Schiff analyzed that the market gave speculators far too much time to buy, and the result is now manifesting as a devastating crash. He warned that investors obsessed with rosy projections of Bitcoin reaching $1 million must face reality. In particular, he stressed that Bitcoin’s inability to follow gold’s upward trend directly refutes the long-standing argument by Bitcoin advocates that it serves as an inflation hedge. He went so far as to say, “Bitcoin is not digital gold, but merely digital fool’s gold.”
From a technical analysis perspective, Schiff also sees a bleak outlook for Bitcoin. He noted that after losing the critical psychological support level of $100,000, Bitcoin is now facing the threat of a death cross, where the 23-day moving average crosses below the 50-day moving average. Schiff predicted that Bitcoin, currently trading around $93,000, is highly likely to fall further to around $69,000, where the 200-day exponential moving average is located. This would represent a loss of more than 45% from its previous peak.
Schiff also expressed skepticism about the actions of institutional investors. He drew attention to the recent silence of companies such as Strategy, which had routinely announced additional Bitcoin purchases every Monday. Schiff criticized the fact that executive chairman Michael Saylor merely posted a vague message saying “Bitcoin never takes a vacation” without disclosing any actual purchases, suggesting that institutions may have reached the limits of their buying capacity. He added that if even the narrative of institutional inflows collapses, Bitcoin’s decline could accelerate further.
The digital asset market is currently in extreme turmoil after experiencing a record single-day drop of $10,000. Schiff made the provocative prediction that Bitcoin, which was born during the 2008 financial crisis, would ultimately be extinguished by a new economic crisis spanning 2025 and 2026. He advised investors to exit the mirage of Bitcoin and move their capital into tangible assets such as gold. If Bitcoin fails to hold the $60,000 support level, market attention is expected to turn toward the $69,000 level—or even lower—floors that Schiff has warned about.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on it. The content should be interpreted solely for informational purposes.*
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