Bitcoin Bear Market Sees Crypto Down 20% in Gold, Says Schiff

Financial commentator Peter Schiff said recently that Bitcoin is in a “bear market,” according to a report by Cointelegraph. He made the comment on Twitter, saying that Bitcoin is now 20% below its record high when measured in gold. Schiff has always criticized Bitcoin and usually compares it to gold, which he calls a safer investment.

Bitcoin vs. Gold

Schiff stated that Bitcoin’s price when compared to gold is pretty worrying. He said, “Priced in gold, Bitcoin is now 20% below its record high set in August.” While Bitcoin’s price in U.S. dollars has fallen only by around 10%, its performance against gold is worse.

For investors who see Bitcoin as “digital gold,” this is important to notice. Gold has always been a trustworthy store of value for centuries. Schiff argues that Bitcoin’s fall shows that it’s not yet proving to be a safe investment for the long term.

What a Bear Market Means

A bear market happens when an asset loses 20% or more of its value from a recent high. And if going by this definition, Bitcoin is basically in a bear market when measured in gold. Schiff says that falling 20% in gold value matters more than falling 10% in dollars. It shows Bitcoin’s performance compared to a safe asset and not just its dollar price.

Schiff has been an outspoken Bitcoin critic for many years. He usually points out that gold is stable and trustworthy, while Bitcoin can change a lot. His comments show the risks of seeing Bitcoin like it’s a safe investment for the long run.

How the Market Reacts

Investors and analysts have different opinions on Schiff’s warning. Some say that falls in the short term is normal for a new and growing market. While the others agree that measuring Bitcoin against gold gives a better idea of its real value.

Even during this fall, Bitcoin is still pretty famous. A lot of institutions and individuals keep investing. But Schiff’s warning is a reminder to everyone that Bitcoin can lose value real fast. And that it is not fully safe, especially compared to gold.

The Ongoing Debate

There is an ongoing debate about whether Bitcoin can really be “digital gold.” The supporters say that Bitcoin is easier to transfer and store more than gold. Also that it can avoid too much government control. While the doubters, like Schiff, say that gold has a longer history and Bitcoin can’t match up to it.

By pointing towards gold, Schiff is asking investors to think more carefully. They should not just look at Bitcoin’s price in dollars but also its value compared to the traditional safe assets.

What Investors Should Know

Bitcoin will most probably stay unpredictable and investors should know all the risks. Schiff’s view on this is a reminder that Bitcoin is still a new kind of asset. That it can rise pretty fast, but can also fall sharply.

Even then, crypto adoption keeps on growing. Technology, new investors and regulatory developments may change Bitcoin’s future. Schiff’s comments point out to be careful caution, but it doesn’t mean it’s the end of Bitcoin.