Peter Schiff Highlights Bitcoin's Volatility Risk After Gold's 6.5% One-Day Plunge

Veteran gold advocate and economist Peter Schiff has intensified his long-standing criticism of Bitcoin, leveraging a recent significant drop in gold prices to underscore the cryptocurrency's inherent volatility. In a widely circulated social media post, Schiff questioned Bitcoin's stability, stating, > "IF GOLD CAN DROP 6.5% IN ONE DAY FROM PANIC SELLING, IMAGINE WHAT CAN HAPPEN TO BITCOIN." This comment reignited the fierce debate between proponents of traditional safe-haven assets and digital currencies.

Schiff has consistently maintained that Bitcoin lacks intrinsic value, often labeling it a "gigantic pump-and-dump" scheme. He argues that its price is driven by speculative hype rather than economic fundamentals, contrasting it with gold's millennia-long history as a store of value. His remarks come amidst ongoing discussions about which asset truly serves as a reliable hedge against economic uncertainty.

The economist's statement followed a period of notable volatility for gold, which recently experienced one of its sharpest declines in years. Earlier this week, gold plunged approximately 8% over two days, shedding an estimated $2.5 trillion in market value, according to reports. This significant movement, which wiped out more market value than Bitcoin's entire supply, provided the direct context for Schiff's cautionary tweet.

Despite gold's recent dip, Schiff continues to champion the precious metal, predicting it could reach $4,000 per ounce by mid-2026. He often points to central banks globally continuing to accumulate gold, not Bitcoin, as evidence of its enduring status as a reserve asset. This institutional preference, he contends, highlights gold's proven reliability during crises.

Interestingly, Schiff, a staunch crypto critic, has recently announced plans to launch his own tokenized gold product, named Tgold. This initiative aims to offer a blockchain-based platform for buying, storing, and redeeming physical gold. However, this move has drawn skepticism, with former Binance CEO Changpeng "CZ" Zhao dismissing tokenized gold as a "trust me bro" asset, emphasizing its reliance on third-party custody rather than true on-chain ownership.

The ongoing discourse between gold and Bitcoin continues to shape investment strategies. While gold is viewed as a stable, long-term hedge, Bitcoin's proponents highlight its potential for rapid growth and its role in a diversifying digital economy. The recent market movements and Schiff's provocative statements underscore the differing risk appetites and philosophical approaches within the global financial landscape.