Peter Schiff says don’t confuse the two selloffs: one’s an entry point, the other’s the end of the party.
Gold and Bitcoin are both sliding, but according to economist Peter Schiff, they’re falling for completely different reasons. On Wednesday, he called gold’s pullback a buying opportunity. Bitcoin’s drop, he said, is something else entirely: a bubble losing air.
What Happened
Schiff pointed out something odd. Bitcoin never joined gold’s rally on the way up, yet it’s now sliding right alongside it on the way down. Many traders had bet that a gold selloff would push money into Bitcoin instead. Schiff says that’s not what’s happening, and won’t.
“While the drops are similar, the dynamics are different,” he wrote on X. “Gold’s selloff is a buying opportunity. Bitcoin’s selloff is a bubble deflating.”
Key Numbers
Bitcoin dropped below $60,000, a level it hasn’t seen in 20 months, and now sits more than 52% off its October all-time high of $126,198. Over the past year, gold is up 20%, while Bitcoin is down 44%. Zoom out to ten years, though, and Bitcoin’s gain of over 9,400% dwarfs gold’s 201%.
Gold isn’t exactly steady either. After a huge run in 2025, it suffered a 13% drop in Q1, its sharpest since the 2008 crash, and has fallen 24% since the Iran war began. Citigroup recently warned gold could fall another 20% by September.
Why It Matters
If Schiff is right, traders waiting for gold weakness to fuel a Bitcoin rebound may be watching the wrong signal entirely.
What’s Next
Watch whether gold finds support near $4,000 and whether Bitcoin’s slide accelerates past the 20-month low.
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Source: Yahoo Finance
