Bitcoin’s value relative to gold has fallen to levels close to those seen nearly a decade ago, reigniting debate over the cryptocurrency’s long-term performance as a store of value.
Key points:
- Bitcoin’s value relative to gold has fallen to near 2017 levels, reigniting doubts about its role as a long-term store of value.
- Peter Schiff says gold and silver are outperforming Bitcoin as investors seek safety.
- Analysts point out that investor behavior has changed with growing demand for assets beyond government control.
Veteran economist and cryptocurrency critic Peter Schiff said Bitcoin’s value is currently equivalent to about 15.5 ounces of gold, down 57% from its 2021 peak and just 10% above its 2017 peak against the precious metal.
In an article on X, Schiff argued that despite years of promotion and growing acceptance on Wall Street, bitcoin has failed to outperform traditional safe havens.
Schiff says gold and silver are surpassing Bitcoin as safe havens
He said most current holders of these currencies would have been better off holding gold or silver, pointing to the sharp rises in precious metals over the same period.
Schiff’s comments come as gold and silver continue to attract cash flow amid geopolitical tensions and uncertainty over interest rate policy, while Bitcoin struggles to regain momentum after recent declines.
“Most people who now own bitcoin would have been better off buying gold or silver instead,” he wrote.
As reported, Matt Hogan, chief investment officer at Bitwise, said the rise in the price of gold above $5,000 per ounce and growing uncertainty over US cryptocurrency legislation represents a defining moment for digital asset markets.
Hogan said the combination of growing demand for assets outside government control and declining confidence in regulatory clarity in the near term could impact both cryptocurrency adoption and price action in the months to come.
Bitcoin is now worth just 15.5 ounces of gold, down 57% from its 2021 peak and just 10% above its 2017 peak. Despite all the hype and support from Wall Street and the Trump administration, most people who now own Bitcoin would have been better off buying gold or silver instead.
-Peter Schiff (@PeterSchiff) January 29, 2026
Hogan noted that nearly half of gold’s value, denominated in dollars, has been created in just the last 20 months, despite its millennia-old history as a store of value.
He argued that the move reflects the long-term effects of expansionary monetary policy, rising debt levels and currency devaluation, but it also reflects a deeper change in investor behavior.
“This shows that people no longer want all their wealth to depend on the goodwill of others,” Hogan wrote.
He also noted growing uncertainty surrounding the Clarity Act, legislation aimed at solidifying a favorable regulatory framework for cryptocurrencies in the United States.
Bitcoin Price Falls as Federal Reserve Warns and Geopolitics Influences Risk Appetite
Bitcoin price fell below $89,000 after a short-lived rebound, affected by tightening financial conditions and rising geopolitical tensions that negatively affected risk assets.
According to analyst Samer Hassan of XS.com, the Federal Reserve’s still somewhat neutral stance, along with tensions in the Middle East, have reduced demand for speculative investments in cryptocurrency markets.
Market data indicates a decline in trader confidence. Figures from CoinGlass show a 42% drop in open trading volume for cryptocurrency futures from record levels, with breakout attempts quickly undone by heavy selling.
Meanwhile, capital has shifted to traditional safe havens such as gold and silver, leaving digital assets struggling to attract new flows as volatility persists.
With Federal Reserve Chairman Jerome Powell signaling there is no urgency to cut interest rates and geopolitical risks are pushing investors toward tangible assets, analysts say bitcoin remains a high-risk trade until policy is eased or global tensions ease.
The post by Peter Schiff Claims Bitcoin’s Value Against Gold Is Nearing 2017 Levels Despite ‘Hype’ appeared first on Cryptonews Arabic.