Renowned gold advocate Peter Schiff has openly criticized Bitcoin's status as a safe haven asset during the ongoing 2025 financial crisis, reigniting debate over the cryptocurrency's stability compared to traditional assets. Schiff highlighted a sharp contrast between Bitcoin's price decline below $80,000 and gold's surge past $3,175 to record highs, underscoring institutional moves favoring gold over digital assets.
Amid geopolitical turmoil in the Middle East, notably the conflict between Israel and Iran, Schiff observed that oil and gold prices increased significantly, while Bitcoin's value dropped approximately 2.5%. This divergence reinforced his argument that Bitcoin acts more like a risk asset rather than a safe haven, as it failed to appreciate during heightened global tensions where gold traditionally flourishes.
Additional pressure came from a substantial selloff of U.S. Treasuries by global central banks, signaling waning confidence in government bonds. Schiff noted that central banks are increasingly replacing these treasuries with gold, positioning it as the preferred store of value given its historical resilience during crises such as those in 2008 and 2020.
Despite Schiff’s critique, members of the Bitcoin community expressed optimism, pointing to recent trading volume spikes and minor price gains over the past week as signs of short-term corrections and potential rebounds. They argue Bitcoin's dynamic nature could facilitate recovery and renewed confidence moving forward.
In summary, Schiff’s commentary and market indicators currently favor gold as the leading safe haven, casting doubt on Bitcoin's role amid economic instability. However, spirited debate and contrasting views from the crypto community persist.