TLDR
- Peter Schiff stated that Bitcoin has failed as digital gold due to its recent price drop in relation to gold.
- He claimed that Bitcoin’s 32 percent decline since August shows a lack of long-term investor confidence.
- Schiff urged Bitcoin holders to sell and move into physical gold for more reliable protection.
- Changpeng Zhao responded by stating that Bitcoin’s long-term gains far exceed gold’s performance.
- CZ pointed out that Bitcoin rose from $0.004 to over $100,000 in 16 years.
Peter Schiff reignited the gold versus Bitcoin (BTC) debate after BTC underperformed against gold over the past two months. Schiff criticized Bitcoin’s role as a store of value and questioned its ability to replace the U.S. dollar. He claimed Bitcoin’s 32% drop against gold since August marks a severe loss of investor confidence.
Schiff Criticizes Bitcoin’s Store of Value Narrative
Peter Schiff argued that Bitcoin’s decline signals a shift away from BTC as a trusted store of value. He said, “This is a brutal bear market for Bitcoin holders,” urging them to exit before further losses. He also labeled Bitcoin as “fool’s gold,” calling it inferior to physical gold in protecting against monetary instability.
Gold is eating Bitcoin's lunch. Bitcoin is now down 32% priced in gold since its August high. This Bitcoin bear market will be brutal. HODLers, sell your fool's gold now and buy the real thing, or have fun going broke.
— Peter Schiff (@PeterSchiff) October 16, 2025
He added that gold continues to prove its resilience and consistency as a hedge against economic pressure. Schiff claimed Bitcoin has failed in its promise and urged investors to “move into real gold now.” He warned that Bitcoin could be “rugged by gold,” repeating his long-standing position on the matter.
Moreover, Schiff maintained that Bitcoin’s failure to hold value undermines the digital gold argument. He emphasized that gold remains a stable asset with a strong historical record in volatile financial markets. Schiff believes that BTC lacks the qualities that make gold a reliable long-term store of wealth.
CZ Counters With Long-Term Bitcoin Growth
Changpeng “CZ” Zhao responded to Schiff’s criticism, emphasizing Bitcoin’s long-term performance over short-term movements. CZ stated, “This is just Peter’s revenge,” suggesting Schiff’s view ignores Bitcoin’s history and adoption. He noted Bitcoin started at $0.004 and now trades near $110,000.
CZ agreed that gold might lead briefly, but said Bitcoin’s long-term return far exceeds that of gold. He argued that Bitcoin’s fixed supply and rising adoption continue to drive its upward price trend. He also insisted that short-term corrections do not reflect the asset’s overall strength.
Furthermore, CZ emphasized that such downturns represent less than “1%” of Bitcoin’s 16-year history. He believes these phases provide perspective for long-term investors rather than reasons for doubt. According to CZ, Bitcoin continues to gain traction across global financial systems and user bases.
Analysts Highlight Key Technical Zones for Bitcoin
Crypto analyst Ted Pillows warned that Bitcoin’s price hovers around its crucial 200-day moving average of $107,000. A daily close below this level may push BTC toward $100,000 or even lower. He suggested prices could drop to the $95,000–$90,000 range if momentum fades.
If $BTC closes below the 200-day MA ($107K) on daily candles → expect more downside toward $100k and possible even lower $95K–90K.
The 200-day MA often acts as a major accumulation zone, not necessarily a panic-sell level.
— Ted (@TedPillows) October 16, 2025
Pillows explained the 200-day moving average often acts as a strong accumulation zone rather than a panic level. He noted long-term investors might buy around this level despite short-term pressure. The recent BTC purchase by Michael Saylor’s firm shows continued institutional confidence.
Polymarket data indicates a 43% chance of Bitcoin reaching $130,000 by 2025, a 21% decrease from recent projections. This decline reflects short-term skepticism, but not a complete reversal in outlook. Meanwhile, Bitcoin trades around $108,392, down 2.18% daily and 12.18% weekly.
