EuroPac.com Chief Economist and Global Strategist Peter Schiff is pushing back on a popular theory making the rounds in crypto markets that a gold selloff would send money flowing back into B
EuroPac.com Chief Economist and Global Strategist Peter Schiff is pushing back on a popular theory making the rounds in crypto markets that a gold selloff would send money flowing back into Bitcoin.
In a post on X, Schiff argued the two assets are falling for entirely different reasons, even though the price action looks similar on the surface.
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Schiff's central point was about correlation without cause. Bitcoin, he noted, never rose alongside gold during its recent run-up, but it is falling alongside gold now. That asymmetry, in his view, is the detail worth paying attention to.
"Bitcoin didn't rise with gold, but it sure is falling with it. Many expected a gold selloff to be a catalyst to send money back into Bitcoin," Schiff wrote.
He framed the current price weakness in both assets as superficially similar but fundamentally unrelated.
Schiff drew a sharp line between how he interprets each asset's decline. Gold's selloff, in his framing, represents a buying opportunity consistent with his long-standing view of gold as a store of value with intrinsic backing that doesn't disappear when its price falls.
Bitcoin's decline, he argued, is something else entirely. According to him, Bitcoin's selloff is a bubble deflating. He rejected the idea that the asset is undergoing a normal correction comparable to gold's pullback.
“Gold's selloff is a buying opportunity. Bitcoin's selloff is a bubble deflating,” he wrote.
For Schiff, the price action reflects speculative excess unwinding rather than a temporary dip in an asset with lasting value.
The post also took direct aim at a theory that has circulated among crypto investors during this stretch of weakness, that a falling gold price would act as a catalyst, pushing capital out of gold and into Bitcoin.
Schiff's framing rejects that premise outright. If the two assets are falling for different reasons, he argues, there's no logical basis for one selloff to fund a rotation into the other.
Schiff has spent years drawing this same distinction between gold and Bitcoin, consistently arguing that the former holds durable value while the latter is driven primarily by speculation and sentiment.
His latest post arrives at a moment when both assets are under pressure simultaneously, giving him a fresh data point to reinforce a position he has held for years.
Whether the rotation theory plays out in the weeks ahead remains to be seen.
For now, Schiff's argument stands as a reminder that two assets moving in the same direction on a chart don't necessarily mean they're moving for the same reason.
As of press time, Bitcoin was trading near $59,155 after dropping 1.5% in the past 24 hours, as per CoinGecko.
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