Bitcoin Weakens as Gold Outperforms and Dollar Liquidity Drops: Experts

Highlights:

• Schiff said years of promotion and Wall Street acceptance did not bring long-term gains.
• Gold and silver performed better, and many Bitcoin holders missed better opportunities elsewhere.
• Hayes linked Bitcoin’s recent drop mainly to a sharp decline in dollar liquidity.

Bitcoin is facing a tough period as several signs show confidence is weakening. Recent price drops, changes in liquidity, and fresh comparisons with gold have renewed debate. Economist Peter Schiff noted that Bitcoin now equals about 15.5 ounces of gold. This is a 57% drop from its 2021 peak and only about 10% higher than 2017 levels, a time known for early market excitement.

Schiff Highlights Bitcoin’s Struggles Against Gold and Silver

Schiff shared his view on X, saying that years of promotion and growing acceptance on Wall Street have not led to long-term gains. His remarks reopened the ongoing debate about whether Bitcoin can truly be a reliable store of value compared with assets trusted for centuries.

Bitcoin is now worth just 15.5 ounces of gold, down 57% from its 2021 high and just 10% above its 2017 high. Despite all the hype and support from Wall Street and the Trump administration, most people who now own Bitcoin would have been better off buying gold or silver instead.

— Peter Schiff (@PeterSchiff) January 29, 2026

Schiff emphasized that gold and silver performed better over the same period. He noted that many current Bitcoin holders missed out on better opportunities. “Most people who now own Bitcoin would have been better off buying gold or silver instead,” he wrote. His comments came as precious metals kept attracting capital amid rising global tensions and uncertainty over interest rates.

Hayes Attributes Bitcoin Decline to Falling Dollar Liquidity

Another perspective came from Arthur Hayes, former chief executive of BitMEX. Hayes linked Bitcoin’s recent pullback less to crypto-specific weakness and more to a sharp decline in United States dollar liquidity. In his assessment, macro conditions have played a dominant role in shaping recent price action. 

Hayes highlighted a roughly $300 billion drop in dollar liquidity over recent weeks. The contraction followed a $200 billion rise in the Treasury General Account. Hayes noted that the government’s actions to build up their cash reserves before spending may have reduced liquidity in the markets. This trend was evident in the USDLIQ index, which measures broad dollar liquidity. The index declined by almost 7% over six months. The levels declined from nearly 11.8 million in August to 10.88 million in late January.

Roughly $300bn fall in $ liq over past few weeks driven mostly by $200bn rise in TGA, gov could be raising cash balances to fund spending in case of shutdown. $BTC falling not a surprise given the fall in $ liquidity. pic.twitter.com/ctPjWd8188

— Arthur Hayes (@CryptoHayes) January 30, 2026

“$BTC falling not a surprise given the fall in $ liquidity,” Hayes wrote. He emphasized that macro forces, rather than sentiment changes within crypto markets, explained much of the decline. Historically, expanding dollar supply supported risk assets, while tighter conditions often triggered pullbacks.

BTC Hits Nine-Month Low Amid Geopolitical Tensions and Market Sell-Off

Bitcoin recently slid to a nine-month low of $81,000. The drop followed rising tensions in the Middle East and fresh tariff threats from United States President Donald Trump. 

TradingView data showed Bitcoin touched $81,058 on Coinbase during early Friday trading. The level marked the lowest price since April. From the October peak of $126,000, Bitcoin has declined 35%. The move erased significant gains accumulated during earlier optimism. CoinGlass data revealed that 280,000 traders faced liquidation within 24 hours. Total liquidations reached $1.80 billion.

Leveraged long positions accounted for 92% of losses, mainly tied to Bitcoin and Ether. Gold fell 9% from its all-time high of $5,600 per ounce on Thursday, while silver dropped 11.5%. At the time of writing, BTC was trading at $82,398, reflecting a 7% decrease in the past 24 hours.