Bitcoin Hits All-Time High and Faces Volatility

Bitcoin reached an all-time high of approximately $109,071 in January but has since decreased nearly 25%, stabilizing around $80,000. This volatility particularly affects newer investors who bought during the peak.

The shifts in Bitcoin’s value compared to traditional assets such as gold and the S&P 500 illuminate the complexities of contemporary financial markets.

Peter Schiff’s Views on Gold and Stocks

Amid volatility, Bitcoin critic Peter Schiff noted that while the S&P 500 is down 4% in 2025, it drops 18% when measured in gold, indicating an approaching bear market. Schiff emphasizes that pricing stocks in gold reveals a clearer picture of inflation, as gold retains its value over time. He highlighted that since December 31, 2000, the S&P 500 has lost 60% of its value when evaluated in gold, reflecting a significant long-term decline.

Gold, Still Real Money?

Responding to Schiff, an analyst argued against using gold for price measurements today. Schiff countered that tokenized gold can now be effectively used, making it more accessible than Bitcoin. He affirmed that gold remains a genuine form of money, albeit primarily utilized by central banks.

Another user pointed out that while Schiff has measured stocks in gold for years, equities keep reaching new highs, leading to suggestions for a new benchmark. Schiff refuted this, stating that stocks are not achieving new highs when measured in gold.

Predictions for Gold and Bitcoin

Schiff suggested that rising prices, driven by government-induced inflation, could lead to gold hitting $4,000 soon. He also warned that Bitcoin may plunge to as low as $20,000 if the Nasdaq enters a bear market, cautioning that if it drops by 20%, Bitcoin might land around $65,000.

Gold recorded a new all-time high of over $3,025 per ounce, reflecting a 15% increase since the year’s start, while Bitcoin has decreased by 10% year-to-date. Gold’s surge is fueled by substantial inflows into gold ETFs and its reputation as a safe-haven asset amid geopolitical challenges.

Historically, gold’s bull markets have led to stagnation or drops in Bitcoin prices. From 2019 to 2020, gold led, with Bitcoin following later. Both assets faced market pressure in 2022 but rebounded in 2023-2024 and are diverging again in 2025. Charlie Morris of ByteTree refers to this scenario as a “proper gold rush,” echoing early Bitcoin days in 2011.