Bitcoin (BTC) dropped sharply after Israel’s recent strike on Iran, falling to around $103,000. In contrast, gold surged near record highs. This fueled critics like Peter Schiff, who questioned Bitcoin’s ability to act as a safe haven. Schiff, a long-time gold supporter, argued that BTC’s price swing proves its instability during crises. He pointed out that while gold and oil surged, Bitcoin moved with stocks—downward. Bitcoin has often been pitched as “digital gold.” But recent geopolitical events have challenged that idea. Schiff highlighted that gold mining stocks hit their highest levels since 2012, showing strong investor demand. Meanwhile, BTC failed to hold up under pressure. This disconnect has reignited the gold vs. Bitcoin debate, especially as investors seek refuge in uncertain times.
Oil Prices Climb, Bitcoin Bounces—But Is It Sustainable?
The Israel-Iran conflict sent oil prices climbing by 5%, while BTC briefly dipped before recovering to above $105,000. Analysts remain divided. Some see oil’s rise as short-lived, noting that Iran’s oil infrastructure hasn’t been hit. Others warn that further escalation could send oil—and inflation—soaring. Arthur Hayes, former CEO of BitMEX, once called Bitcoin “stored energy in digital form.” If oil stays high, Hayes believes Bitcoin should benefit. But the market hasn’t clearly followed that path yet. Short-term traders are eyeing the $100,000 support level. If that holds, Bitcoin could rally. But the connection between oil and Bitcoin remains unclear, leaving the crypto market walking a tightrope.
Bitcoin Price Drops Could Be the Start of a Big Comeback
Despite the panic, some analysts see opportunity. Historical data shows that Bitcoin has rallied over 60% within 50 days after past geopolitical crises. André Dragosch from Bitwise noted that BTC’s performance after similar global events has been surprisingly strong. For example, after the U.S.-Iran tension in 2020, BTC outpaced both gold and stocks. This pattern might repeat. BTC is still trading above key support zones, and on-chain data shows strong accumulation by whales. Over 30,000 BTC were bought during the recent dip. The Puell Multiple, a key market signal, also suggests that Bitcoin is undervalued. All of this points to a possible rally if fear in the market fades.
Bitcoin Sentiment Dips as Fear Index Falls
The Crypto Fear & Greed Index dropped by 10 points to 61 during the sell-off, showing rising caution. A recent poll showed over 50% of traders want to “buy the dip,” while others worry BTC could drop below $100,000. This division reflects the fragile market mood. Technical indicators are mixed. Resistance at $110,000 remains strong, but BTC has recovered slightly from its lows. Meanwhile, traders are closely watching the expiration of 28,000 BTC options worth $3 billion. The last time this happened, markets stayed calm. But with heightened tensions, any shift could trigger more volatility.
Peter Schiff Doubles Down on Bitcoin Doubts
Peter Schiff continues to criticize Bitcoin, calling its recent behavior proof it’s not a true store of value. He claims that BTC’s drop during crisis moments shows it’s too volatile to be trusted like gold. Schiff also notes that central banks are shifting toward gold—not Bitcoin—as their hedge against turmoil. Still, Bitcoin believers aren’t backing down. They argue that BTC’s scarcity, decentralization, and institutional interest make it a long-term asset worth holding. While Schiff sees instability, others see strategic entry points. The next few weeks may determine who’s right.
