Bitcoin’s latest surge has reignited euphoria across the crypto market, with the world’s largest digital asset smashing through $126,000 and its market cap crossing the $2.5 trillion mark for the first time.
But not everyone is convinced the rally is built to last. Veteran economist and gold advocate Peter Schiff is warning investors not to celebrate too soon, calling the move “a classic bear market rally.”
Schiff, who has long dismissed Bitcoin as speculative, argued that the cryptocurrency is still lagging badly behind gold, which just hit an unprecedented $4,000 per ounce. By his calculation, Bitcoin would need to climb to around $148,000 to match its previous record in gold terms. “Bitcoiners shouldn’t get too excited,” he said, adding that gold’s steady climb is a better reflection of long-term market confidence.
For Schiff, the renewed strength in gold – now valued at roughly $27 trillion – is a sign that investors are returning to traditional safe havens as faith in central banks continues to erode. “The Fed has it wrong,” he wrote on X, urging policymakers to raise interest rates instead of cutting them further.
Still, crypto bulls see the situation differently. With markets betting on another Federal Reserve rate cut this month and a government shutdown adding uncertainty to U.S. fiscal stability, traders view Bitcoin’s rise as part of a broader shift toward alternative stores of value. Some analysts now predict that $150,000 could be within reach before year-end if momentum holds.
Data from Ecoinometrics shows both Bitcoin and gold outperforming major asset classes over the past two years. Gold has delivered stability and risk-adjusted strength, while Bitcoin continues to lead in pure returns, reinforcing its reputation as the high-volatility counterpart to traditional hard assets.
While Schiff insists that Bitcoin’s glory days are behind it, others see this cycle as proof that the asset’s resilience is unlike anything seen before. Whether it’s a “bear rally” or the beginning of a new era, one thing is certain – Bitcoin and gold are once again battling for the crown of the world’s most coveted store of value.
