Gold advocate Peter Schiff reignited debate over Bitcoin's BTC/USD status as "digital gold," questioning how it can serve as gold's modern counterpart when the two assets move in opposite directions.
What Happened: In his latest critique on Monday, Schiff mocked Bitcoin's rally amid a gold decline following upbeat U.S. trade news.
In response, David Gokhshtein challenged Schiff to a public debate and offered to buy a gold bar from Schiff's company using Bitcoin if Schiff could back his claims with real data.
Analyst Tomer Benami clarified the dynamic, noting that from 2009–2023, both assets rose as real yields fell and central bank balance sheets expanded.
While gold acts as a hedge against rising rates, Bitcoin trades as a liquidity-sensitive risk asset.
The "digital gold" label, he added, reflects long-term similarities, not short-term price correlation.
Investor Bag Holder IQ further explained that gold and Bitcoin diverging on positive economic news isn't a contradiction: gold hedges fear, while Bitcoin hedges fiat.
When optimism rises, investors sell gold as recession risks fade but buy Bitcoin for growth and liquidity exposure.
Also Read: Peter Schiff Says Bitcoin, Ethereum Crash Is ‘Imminent’—But How Much Worse Can It Get?
What's Next: Market observers suggest capital is rotating from defensive assets like gold into risk-on plays such as equities and crypto, as the U.S. and China near another "meaningless trade deal that Trump can tout as another win" as quoted by Schiff.
Analyst Ted Pillows noted the S&P 500 hitting new all-time highs confirms the shift toward risk assets, predicting that sustained momentum could push Bitcoin and Ethereum to fresh peaks.
Bitcoin investor and entrepreneur Lark Davis argue that gold's drop below key levels signals an early rotation of capital from gold into Bitcoin, a move that could reinforce BTC's long-term "digital gold" narrative.
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