Changpeng Zhao (CZ), co-founder of Binance, has countered Peter Schiff’s warning about a potential bear market in Bitcoin. Schiff recently expressed that Bitcoin’s decline regarding gold indicated that investors are losing faith in its long-term value.

Schiff’s Critique

Schiff tweeted that, “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.” He further urged holders to sell their ‘fool’s gold’ in favor of real assets.

CZ responded to Schiff’s claims with sarcasm, calling it “Peter revenge” and noted that while his argument may seem valid temporarily, it reflects only about 1% of Bitcoin’s 16-year trajectory. Throughout its history, Bitcoin has surged from $0.004 to $110,000, despite some declines.

Joe Hill quipped that Schiff seems to be stuck in the 1970s and suggested a bear market might also hit gold if Bitcoin drops. On the other hand, trader Tony Edward mentioned a potential upcoming liquidity shift that could help Bitcoin and the broader crypto market to outshine traditional investments.

The De-Bitcoinization Concern

Schiff’s comments follow Bitcoin’s lesser performance compared to gold, pointing out that Bitcoin peaked around $126,000 in early October but has dropped to about $105,000, indicating a roughly 17% decline in USD. Notably, Bitcoin’s value plummeted 32% against gold from August to date, while gold reached a high of $4,300 per ounce.

He referred to this trend as “de-bitcoinization” and “de-dollarization,” highlighting a weakening narrative of Bitcoin as a superior alternative to both gold and the dollar.

Currently, Bitcoin trades at approximately $106,025, reflecting a more than 12% decline in the week and about 16% less than its August peak.