Bitcoin vs. Gold: Schiff Says 2025 Meltdown Proves Crypto’s Weakness

As global markets reel from the aftershocks of April 7’s equity market collapse—dubbed “Black Monday”—veteran economist, gold backer and longtime Bitcoin critic Peter Schiff has reignited debate over the viability of digital assets during times of financial distress. 

Schiff took to X (formerly Twitter) to make a bold proclamation: “Bitcoin was born out of the financial crisis of 2008. Ironically, the financial crisis of 2025 will kill it.”

The comment comes amid heightened market volatility and mounting economic uncertainty, following US President Trump’s surprise 90-day pause on new trade tariffs. 

Also read: A Look at Bitcoin Critic Peter Schiff and His Economic Predictions

Investors are grappling with an increasingly fragile global financial system, and Schiff has used the moment to underscore his gold-over-crypto stance.

Bitcoin and Ethereum Tumble as Gold Surges

Bitcoin has fallen over 27 per cent since the start of the year, with much of the drop accelerating in the wake of the Black Monday crash. 

Schiff particularly targeted the newly established US Strategic Bitcoin Reserve, which was launched on March 6 and has already lost more than 12 per cent of its value. 

Also read: Peter Schiff Slams XRP Inclusion in U.S. Crypto Reserve – Is He Right?

He claimed that had the government invested in gold instead, it would have seen a 2 per cent gain during the same period. 

Gold price chart (Source: TradingView)

Ethereum has also seen a significant decline, plunging nearly 20 per cent overnight and briefly falling below $1,500. 

Schiff predicted that it may soon drop below the psychologically important $1,000 threshold, a level not seen since mid-2022. 

Meanwhile, Strategy and other firms heavily exposed to crypto came under fire, with Schiff mocking their long-standing Bitcoin accumulation strategies.

Also read: The New Currency War: Gold-Backed Stablecoins vs. the US Dollar

In stark contrast to crypto’s descent, gold stocks surged by 5 per cent, reinforcing Schiff’s position that traditional safe havens remain superior in times of economic crisis. 

Treasury yields also spiked, and the US dollar took a hit—down 2.3 per cent against both the euro and yen, and 3.9 per cent versus the Swiss franc.

The Great Safe Haven Debate: Gold vs. Bitcoin

Schiff’s comments have fueled a broader debate over the role of Bitcoin and other digital assets during economic downturns. 

For years, Bitcoin has been promoted as “digital gold”—a hedge against inflation and fiat instability. However, Schiff and other critics argue that recent performance proves otherwise.

The economist’s latest remarks tap into growing concerns about stagflation, trade tensions, and the long-term sustainability of digital assets. Schiff’s skepticism is not new, but the current market climate has amplified its reach. 

Also read: Forget Bitcoin! Kiyosaki Reveals His ‘Hottest Investment’ for 2025

He suggests that investor trust in Bitcoin as a store of value is eroding, while gold’s performance underscores its resilience and time-tested reputation.

Bitcoin price chart (Source: CoinMarketCap)

The US government’s Strategic Bitcoin Reserve—established as part of a broader digital finance initiative—was intended to signal confidence in decentralized assets. Instead, its early losses have handed critics like Schiff fresh ammunition. 

Questions are now surfacing about the wisdom of placing taxpayer-backed assets in such volatile investments, particularly when traditional alternatives like gold are outperforming.

Despite Schiff’s stark warnings, many in the crypto community continue to hold a long-term view. 

Also read: Is Bitcoin a Good Investment? Evaluating Its Risks and Rewards

Proponents argue that digital assets are undergoing a necessary recalibration and will rebound as the broader financial system continues to strain under geopolitical and economic pressure. 

Yet with Bitcoin’s recent drop and Ethereum’s sharp decline, the narrative of crypto as a reliable safe haven is facing its most serious challenge since its inception.

As the world watches how central banks, institutional investors, and governments respond to the current financial turbulence, the battle between digital gold and physical bullion continues to define the conversation. 

Whether Schiff’s prophecy of Bitcoin’s demise proves accurate remains to be seen, but his message has undeniably struck a chord in the current climate of uncertainty.