Peter Schiff criticizes Bitcoin as failing as digital gold, while CZ defends its long-term value and Bitcoin faces key price support levels.
Peter Schiff has once again criticized Bitcoin (BTC), claiming that it has failed to serve as a reliable store of value and cannot be considered digital gold.
His remarks come as Bitcoin underperforms against gold, with Bitcoin losing 32% of its value since August when priced in gold. Schiff calls the current period a “de-bitcoinization” phase, urging investors to reconsider Bitcoin in favor of traditional gold as a safe haven asset.
Schiff Critiques Bitcoin’s Performance Against Gold
Peter Schiff’s criticism of Bitcoin stems from its 32% decline in value relative to gold since August. He described this as evidence that Bitcoin is not living up to its promises of being a hedge against inflation or a store of value.
Schiff claimed that Bitcoin’s volatility and failure to maintain its value against gold highlight its shortcomings as digital gold.
Gold is eating Bitcoin's lunch. Bitcoin is now down 32% priced in gold since its August high. This Bitcoin bear market will be brutal. HODLers, sell your fool's gold now and buy the real thing, or have fun going broke.
— Peter Schiff (@PeterSchiff) October 16, 2025
In a tweet, Schiff emphasized that Bitcoin holders should “sell your fool’s gold now and buy the real thing.” He pointed to this as part of a broader argument that Bitcoin is unable to function as a reliable alternative to the U.S. dollar or as a safe asset for long-term value storage.
Schiff also stated that Bitcoin’s ongoing underperformance in this phase signals a “brutal bear cycle” for BTC holders.
CZ Defends Bitcoin’s Long-Term Value
In response to Schiff’s criticism, Binance CEO Changpeng “CZ” Zhao provided a counterpoint, suggesting that Bitcoin’s long-term growth far outweighs its short-term dips.
CZ referred to Bitcoin’s historic performance, noting that it had risen from $0.004 to $110,000 since its inception. He acknowledged that Bitcoin might underperform in the short term but argued that such moments represent only a small fraction of its overall history.
CZ stated that while gold may perform better in the short term, Bitcoin’s unique features, such as its limited supply and increasing adoption, continue to provide a strong foundation for its long-term value.
He argued that Bitcoin’s growth is just getting started and that its trajectory differs significantly from gold’s, which has remained relatively stagnant over time.
Analyst Points to Bitcoin’s 200-Day Moving Average as Key Level
Crypto market analyst Ted Pillows has highlighted Bitcoin’s 200-day moving average (MA) as a crucial support level in its price action.
He noted that Bitcoin is currently trading near $108,000, and a daily close below $107,000 could signal further downward pressure. Pillows suggested that if Bitcoin falls below the 200-day MA, the price could drop toward $100,000 or even lower.
If $BTC closes below the 200-day MA ($107K) on daily candles → expect more downside toward $100k and possible even lower $95K–90K.
The 200-day MA often acts as a major accumulation zone, not necessarily a panic-sell level.
— Ted (@TedPillows) October 16, 2025
However, Pillows also pointed out that the 200-day MA is often a region where long-term investors accumulate more BTC, despite short-term selling pressures. This trend could potentially support Bitcoin’s value in the medium to long term, even if its short-term prospects appear uncertain.
