Bitcoin will depreciate by 40% against gold in 2025, economist Schiff: Sell your Bitcoin!

As the value of Bitcoin against gold has fallen by more than 40% this year, the debate over whether “Bitcoin is digital gold” has resurfaced. Renowned economist and gold advocate Peter Schiff commented on the social platform X on Monday, pointing out that the value of Bitcoin is rapidly declining and urging investors to “sell Bitcoin and switch to physical precious metals.”

Although Bitcoin is currently trading at around $89,800, which is a decrease of about 28.5% compared to its historical high of around $109,000 set in early 2025, the decline appears even more severe when measured against gold. According to the latest prices, one Bitcoin can now be exchanged for only about 60% of the amount of gold it could at the beginning of the year, reflecting the relatively weak value preservation function of cryptocurrency assets.

Explanation: What does “devaluation against gold” mean?

It should be noted that the “Bitcoin depreciating 40% against gold” here refers to the decrease in purchasing power of Bitcoin measured in gold, rather than a direct drop of 40% in its price in USD.

For example, if at the beginning of 2025 one Bitcoin could be exchanged for 30 ounces of gold, but now it can only be exchanged for about 18 ounces, this indicates that its value measured in gold has declined by about 40%. This change in the “BTC/XAU” ratio is often used to assess whether Bitcoin can truly serve as a “store of value” like gold, as a hedge against inflation.

From the perspective of the USD price, Bitcoin has accumulated an increase of nearly 198% since mid-2022, significantly higher than gold's 117%. However, the “relative weakness” in the short term has prompted the market to re-examine the fundamental differences between these two assets.

Gold breaks through the $4,000 barrier, Bitcoin's market value is surpassed.

Currently, the spot gold price sits at a new high of $4,045 per ounce, with a cumulative increase of over 55% this year, and the market capitalization has also risen to about $28.3 trillion. In contrast, Bitcoin not only fails to continue the momentum brought by the 2024 ETF craze and halving effect but also ranks at the bottom among major assets in 2025, with a market capitalization hovering around $1.8 trillion. Such a comparison makes Schiff's criticism more powerful. He emphasizes, “Bitcoin is not digital gold, but digital fool’s gold,” once again questioning its ability to serve as a hedge and a store of value.

The divergence between traditional assets and cryptocurrencies is intensifying.

Gold and Bitcoin have long been regarded as representatives of “sovereign-free assets,” and investors often use both as tools to combat inflation and currency devaluation. However, this year's market performance has clearly favored the gold camp. With rising geopolitical tensions and increasing uncertainty in global central bank policies, the appeal of tangible assets has significantly strengthened.

The current gold/Bitcoin exchange rate has reached its highest level since the beginning of 2023, providing gold advocates with a new argument that “assets that truly hold value must be tangible, scarce, and have stood the test of time.”

Diverging opinions still exist, with some institutions optimistic about a Bitcoin rebound.

Despite Schiff's continued pessimism towards Bitcoin, there are still voices in the market holding the opposite view. JPMorgan, in its latest research report, pointed out that if institutional investors continue to enter the market and global economic uncertainty remains unresolved, Bitcoin could see a new wave of growth in 2026, even challenging gold's position as an alternative store of value.

This report also reminds investors that although Bitcoin has performed poorly this year, its volatility and market structure mean that the possibility of a rebound still exists, especially in the context of a warming macro risk environment.

As of Tuesday morning this week, Bitcoin is priced at $89,800, having fallen 1.2% in the past 24 hours. In contrast, gold prices remain stable at high levels, with spot prices at $4,045 per ounce. This price difference highlights the diverging trends of the two in the short term, adding more topics to the debate between “digital gold” and “physical gold.”

This article Bitcoin will depreciate by 40% against gold in 2025, economist Schiff: Sell your Bitcoin! First appeared on Chain News ABMedia.