CZ Counters Peter Schiff’s Bitcoin Bear Market Warning

Prominent Bitcoin critic Peter Schiff has intensified his warnings about what he describes as a ‘brutal’ bear market for the cryptocurrency, pointing to Bitcoin’s 32% decline against gold since August as evidence of weakening investor confidence. Via social media platform X, Schiff declared that ‘gold is eating Bitcoin’s lunch’ and encouraged holders to sell their ‘fool’s gold’ to purchase the real asset, claiming those who failed to do so would suffer losses. The economist’s comments come as gold climbed to a record high of $4,300 per ounce while Bitcoin fell from approximately $126,000 in early October to about $105,000 today.

Schiff described the current trend as both ‘de-bitcoinization’ and ‘de-dollarization,’ referring to what he sees as a weakening of the narratives that once presented Bitcoin as a superior alternative to traditional stores of value like gold and currencies like the U.S. dollar. This represents part of ongoing commentary from the financial commentator, who has consistently challenged Bitcoin’s narrative as ‘digital gold.’ Schiff believes Bitcoin’s price trajectory serves as a warning that the digital asset is in a deeper bear market, with the cryptocurrency currently trading around $106,025—marking an over 12% drop in the past week and nearly 16% below its August all-time high.

Binance co-founder Changpeng Zhao responded to Schiff’s latest prediction with sarcasm, referring to it as ‘Peter revenge’ while acknowledging the short-term accuracy of the economist’s observations. However, CZ provided crucial context by explaining that such periods of underperformance represent only about 1% of Bitcoin’s 16-year history. During that broader timeframe, the cryptocurrency has demonstrated remarkable growth, rising from $0.004 to $110,000 despite occasional declines against traditional assets like gold.

The Binance co-founder’s response underscores the fundamental philosophical divide between cryptocurrency proponents and traditional asset advocates. While Schiff focuses on recent price movements to support his bearish outlook, CZ emphasizes Bitcoin’s long-term trajectory and historical resilience. This perspective aligns with data showing that despite current weakness, Bitcoin has consistently recovered from previous bear markets to reach new all-time highs, though past performance doesn’t guarantee future results.

The debate has sparked varied reactions across the financial community. Joe Hill joked that the gold advocate is ‘stuck in the 1970s,’ suggesting that gold itself could face a bear market if the leading cryptocurrency declines. Meanwhile, popular trader The Bitcoin Therapist revealed he’s considering selling his digital holdings to move entirely into gold and is seeking guidance, indicating that Schiff’s arguments are resonating with some market participants.

Tony Edward, founder of the Thinking Crypto Podcast, offered a counterpoint to Schiff’s bearish outlook, arguing that an upcoming liquidity rotation could allow Bitcoin and the wider crypto market to outperform traditional assets. This perspective suggests that current market conditions may represent a temporary phase rather than a fundamental shift in Bitcoin’s value proposition. The divergence of opinions highlights the ongoing uncertainty surrounding digital assets and their relationship to established stores of value like gold.

The clash between CZ and Schiff represents more than just a disagreement between two prominent financial figures—it embodies the broader tension between innovative digital assets and traditional safe havens. As Bitcoin continues to establish its identity within global financial markets, debates over its relationship with gold and other traditional stores of value are likely to persist, particularly during periods of market volatility and price correction.