Schiff argued that the selloff exposed the fragility of crypto markets and hinted that another major downturn could be on the horizon.
The drop, which came amid renewed U.S. – China trade tensions, saw global markets reel after Washington announced steep new tariffs on Chinese imports.
The shock move triggered massive liquidations across crypto derivatives markets, reportedly wiping out billions in positions before a partial rebound briefly lifted sentiment. Still, Bitcoin’s recovery has struggled to hold, with the asset sliding back toward the $113,000 range on Monday.
Schiff, a longtime advocate for gold, pointed to the precious metal’s recent surge past $4,100 as proof that traditional stores of value remain unmatched. “Gold’s rally exposes the myth of Bitcoin as ‘digital gold,’” he said, warning that the crypto’s floor could vanish suddenly if investor confidence falters.
Market observers note that both stocks and cryptocurrencies have been unusually reactive to political headlines, reflecting how sensitive traders remain to any shift in trade policy. Despite short-lived optimism over possible negotiations between Washington and Beijing, risk appetite remains shaky across global markets.
For Schiff, the contrast between Bitcoin’s erratic swings and gold’s steady ascent underscores his long-standing argument: in times of global uncertainty, digital assets are still speculation—while gold, in his view, is stability.