Well-known economist Peter Schiff said on Tuesday that Bitcoin’s (CRYPTO: BTC) rally has ended, highlighting its failure to mirror gains in tech stocks or precious metals like gold.
Why Schiff Believes Bitcoin’s Best Days Are Over
In an X post, Schiff expressed his skepticism about Bitcoin’s ability to rise further. He argued that if Bitcoin doesn’t rise when tech stocks or gold and silver do, it’s unlikely to go up at all.
“The Bitcoin trade is over,” Schiff painted a bearish outlook. “If Bitcoin won’t go up, it can only go down. If HODLers are lucky, it won’t be a slow death.”
Bitcoin’s Correlation With Tech Stocks, Gold
Schiff’s argument comes after Bitcoin failed to rally despite the Nasdaq Composite, considered a barometer for tech stocks, ending higher, and gold and silver surging to record highs.
Bitcoin’s correlation with gold has turned sharply negative this month. The coefficient has dropped from 0.74 on Dec. 9 to -0.57 as of this writing, according to TradingView.
However, Bitcoin’s correlation with the Nasdaq Composite has increased from 0.33 at the beginning of the month to 0.66 currently.
See Also: XRP’s 2025 Was A Letdown While Silver Nailed A 145% Rally: Here’s Why
Another aspect to consider is that, while Bitcoin has struggled lately, its gains over the last five years have far outpaced those of the Nasdaq composite and spot gold.
| Cryptocurrency | Value (Recorded at 10:50 p.m. ET) | 24-Hour Gains +/- | 5-Year Gains +/- |
| Bitcoin | $87,294.60 | -0.93% | +240% |
| Nasdaq Composite | 23,561.84 | +0.57% | +84.01% |
| Spot Gold | $4,492.82/Ounce | +0.18% | +138% |
Bitcoin Backer Counters Schiff
Willy Woo, a popular Bitcoin advocate who has previously responded to Schiff’s criticism of the apex cryptocurrency, stated earlier this week that BTC has always been a “risk-sensing instrument” and tends to lead other risk assets into bear markets.
Woo also claimed that Bitcoin would be resilient in an era when gold “fails under its own inflation bug.”
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
