Peter Schiff, a strong Gold advocate and Bitcoin critic, in a recent post on X, argues that Bitcoin’s market behavior has fundamentally changed since gaining acceptance on Wall Street.
According to him, the cryptocurrency once known for moving independently of traditional assets, now reacts to global risk sentiment much like major tech stocks, particularly during geopolitical tensions.
Schiff also pointed to what he described as a growing inverse relationship between Bitcoin and gold, a shift he says contradicts earlier claims that institutional adoption would strengthen Bitcoin’s role as a hedge.
He wrote,
“Prior to Wall Street embracing Bitcoin, it had a near-zero correlation to other risk assets. Now it trades almost in lockstep with the NASDAQ, especially in reaction to geopolitical events. It is also now negatively correlated with gold, the opposite of what Wall Street promised”.
Bitcoin’s recent price action appeared to validate Schiff point in real time. Amid geopolitical tension, the crypto asset plunged sharply dropping below $66,000 and briefly touching as low as around $63,000.
By Sunday, BTC had recovered to trade near $67,000-$68,000 at points, erasing much of the initial war-driven losses. In contrast, traditional safe-haven assets behaved differently. Gold surged over $100 per ounce in the aftermath.
Silver climbed more than $2. Oil jumped over $5.50 per barrel, reaching $72.50 and up more than 30% year-to-date in 2026.
The Correlation Shift: From Independent to Beta Play?
Schiff’s core argument centers on Bitcoin’s transformation since heavy institutional adoption began around 2020-2021. According to him pre-Wall Street era, Bitcoin showed near-zero correlation with equities, often touted as “digital gold”, a non-correlated hedge against inflation, fiat debasement, and geopolitical risk.
Bitcoin’s price rarely mirrored movements in the stock market. For example, during stock market sell-offs or geopolitical crises, the crypto asset often maintained its own trajectory, sometimes even rising as investors sought alternatives outside traditional financial systems. This made it attractive to those looking for a hedge or portfolio diversification
Post-ETF era, multiple analyses show Bitcoin’s 30-day rolling correlation with the NASDAQ frequently exceeding 0.8 in recent years, behaving like a high-beta tech stock rather than an independent asset class.
Schiff argues that this proves Wall Street’s promises were false. Bitcoin has become just another risk-on asset that sells off when investors flee to safety, he says.
The Iran strike episode has reignited the long-running debate. Is Bitcoin a revolutionary monetary asset or simply the most volatile expression of Wall Street speculation?
For now, the BTC price action supports Schiff’s thesis at least tactically. Bitcoin reacted like a leveraged NASDAQ play during the weekend turmoil, while gold (despite being closed) held or gained in futures pricing.
Whether this correlation persists or Bitcoin eventually “decouples” as adoption matures remains one of the most watched questions in finance. In the short term, with oil spiking, inflation risks rising, and geopolitical uncertainty far from resolved, traders are bracing for continued chop.
Looking ahead, Bitcoin’s behavior in the coming weeks will likely remain sensitive to macroeconomic and geopolitical developments. In the medium term, some analysts argue that Bitcoin could regain partial independence as global adoption matures and institutional trading strategies evolve.
