Gold advocate Peter Schiff is once again challenging Bitcoin’s reputation as a hedge against inflation. Despite Bitcoin’s recent 14% price surge in April, Schiff says it still behaves more like a tech stock than a store of value.
“Bitcoin has not decoupled from the NASDAQ,” he said, urging investors to focus on gold for long-term protection. Schiff believes Bitcoin’s rally is driven by speculation and macroeconomic news, not intrinsic value. He warns that its volatility makes it unreliable during economic uncertainty.
Meanwhile, Senator Cynthia Lummis has taken the opposite stance. She backed the BITCOIN Act, claiming Bitcoin adoption could help solve the U.S. national debt crisis, now over $36 trillion.
The company MicroStrategy maintains its support for Bitcoin despite its Q1 2025 financial loss of $16.49 per share from a $5.9 billion Bitcoin writedown. Michael Saylor stated his plan to accumulate an additional $84 billion worth of Bitcoin because he believes in its enduring value.
Market momentum has also supported Bitcoin. April’s inflation data showed a drop to 2.3%, boosting hopes for interest rate cuts. Donald Trump added pressure by urging the Fed to ease monetary policy.
According to Fidelity’s Jurrien Timmer, Bitcoin functions as both a “hard money” and a “risk asset.” The current better risk-adjusted returns from gold do not prevent Bitcoin from becoming profitable when liquidity conditions improve.
The data from Glassnode indicates that long-term holders increased their BTC holdings by 254,000 units as they demonstrated their confidence in the market, but analysts warn that the price approaching $99,900 could lead to selling pressure.
Is Bitcoin a hedge or hype? The debate continues.
Also Read: Peter Schiff Slams Bitcoin—Again—Says Strategy Will ‘Go Bankrupt’
