Peter Schiff Warns of S&P 500 Bear Market and Inflation Impact, Bitcoin Struggles as Gold Soars in 2025

The post Peter Schiff Warns of S&P 500 Bear Market and Inflation Impact, Bitcoin Struggles as Gold Soars in 2025 appeared first on Coinpedia Fintech News

Bitcoin hit an all-time high of around $109,071 in January. However, it has since dropped nearly 25%, settling at about $80,000. The fluctuations in Bitcoin, alongside traditional assets like gold and the S&P 500, highlight the complex nature of today’s financial markets.

Amidst the uncertainty and volatility, Bitcoin critic Peter Schiff highlighted that while the S&P 500 is only down 4% in 2025, when you measure it in gold, it’s actually down 18%, almost reaching a bear market.

He shared that pricing stocks in gold gives a clearer picture of inflation because gold holds its value over time. Since December 31, 2000, the S&P 500 has lost 60% of its value when priced in gold, which shows a major long-term decline.

Gold, Still Real Money?

In response to his post, an analyst argued that you can’t price things in gold because it’s not commonly used for purchases anymore. Peter Schiff responded by saying that tokenized gold is now a practical way to spend gold, making it easier to use than Bitcoin. He emphasized that gold is still real money, even though only central banks are using it as money today.

Another X user pointed out that despite Peter measuring stocks in gold for decades, equities continue to hit new highs while gold lags behind Bitcoin, suggesting it might be time for a new benchmark. However, Peter responded by saying that stocks are not reaching new highs when priced in gold and dismissed Bitcoin as irrelevant.

Gold To Reach $4000!

He further noted that the price of everything is going up as governments destroy the value of fiat currencies by creating inflation. When asked if he was open to returning to the gold standard, Peter Schiff replied, “Of course.” Furthermore, Schiff also believes that it’s not only possible, but highly probable this year for gold to teach $4,000.

BTC Could Drop To $20K?

Previously , he pointed out that past bear markets saw significant declines in the Nasdaq, and if it falls 40%, Bitcoin could drop to $20,000 or lower. Peter Schiff has warned that Bitcoin could face a sharp decline if the Nasdaq enters a bear market. He pointed out that with the Nasdaq already down 12%, if it drops by 20%, Bitcoin could fall to around $65,000.

Gold has hit a new all-time high, rising above $3,025 per ounce with a 15% increase since the start of the year. Meanwhile, Bitcoin (BTC) is down 10% year-to-date. Gold’s rally is driven by strong inflows into gold ETFs and its role as a safe-haven asset amid geopolitical uncertainty. Discussions of new tariffs in the U.S. under President Trump have also boosted demand for U.S. equities. Over the past year, gold has surged 40%, far outpacing Bitcoin’s 16% gain.

Historically, when Gold enters a bull market, it often causes Bitcoin to stagnate or decline. In 2019-2020, gold led, and Bitcoin followed in late 2020. Both assets faced pressure in 2022 but rebounded in 2023-2024. Now in 2025, they’re diverging again. Charlie Morris of ByteTree calls this a “proper gold rush,” similar to 2011 when Bitcoin was just starting.