Peter Schiff Warns Gold Surge Could Trigger Bitcoin Sell-Off
- Peter Schiff warns Bitcoin’s rally may end as gold surges past $4,000 per ounce.
- Schiff argues Bitcoin is losing value against gold despite hitting new record highs.
- Rising U.S. debt and market fears boost gold demand, challenging Bitcoin’s dominance.
Economist Peter Schiff has reignited the debate between gold and Bitcoin after claiming that the crypto market could soon be “rugged” by gold. Schiff, a long-time gold advocate and Bitcoin critic, warned that Wall Street’s optimism about digital assets may have reached unsustainable levels. His remarks came as gold prices continued to surge above the $4,000 mark while Bitcoin pulled back from record highs.
Schiff Warns Bitcoin Rally May Soon Reverse
Schiff posted on X that Bitcoin and “everything crypto” are at risk of a major correction as investors turn to gold. He said the metal’s sharp rally could lead to a sell-off in Bitcoin.
His comments followed Bitcoin’s brief dip below $122,000 after reaching an all-time high of above $126,000 earlier in the week. The cryptocurrency had rallied on optimism over the U.S. government’s fiscal situation, with traders pricing in the impact of a possible three-week government shutdown. Schiff argued that this rally reflected excessive speculation rather than lasting confidence in Bitcoin’s role as a hedge.
The economist added that gold’s momentum reflects a larger investor rotation into traditional safe-haven assets. “Wall Street is so bullish on crypto that it’s hard to imagine it going much higher from here,” he said. Schiff believes gold’s rising demand could trigger the next big shift in investor sentiment away from digital currencies.
Bitcoin Faces a Moving Target Against Gold
In a separate post, Schiff described Bitcoin’s gains as “just a bear market rally.” He argued that Bitcoin cannot be considered in a true bull market until it surpasses its previous record in gold terms. At current gold prices above $4,000 per ounce, Schiff estimated that Bitcoin would need to hit about $148,000 to reach parity with its earlier peak.
Schiff said that Bitcoin’s target keeps rising as gold keeps rising when asked about Bitcoin’s valuation in gold terms. At the time of writing, one Bitcoin equaled 31.33 ounces of gold, down from 40 ounces in December 2024. Schiff said the declining ratio demonstrates that Bitcoin is losing value relative to gold despite its recent rally.
He reiterated that gold remains a superior store of value. “Bitcoin or crypto plays are far more common,” Schiff said, “but the appeal of gold as a hedge is growing.” He believes that as gold continues to outperform, more investors will shift capital into the metal, especially those concerned about market volatility.
Related: Ken Griffin Warns as Gold and Bitcoin Challenge Dollar Power
Macro Conditions Strengthen Gold’s Case
Gold’s rally has been fueled by macroeconomic tensions in the United States. Rising debt levels, fiscal imbalances, and political uncertainty have all contributed to investor demand for safe-haven assets.
Bridgewater Associates founder Ray Dalio recently warned that the U.S. government’s growing debt burden poses a long-term risk to economic stability. The government is still spending more than the revenue it is generating, and this has led to a situation where the assets, such as gold, are historically preferred.
These economic pressures have helped push gold toward record territory, now above $4,000 per ounce. Bitcoin has also benefited from these conditions, but Schiff maintains that its rise is speculative as opposed to that of gold, which has been steadily rising. Meanwhile, other investors have voiced opposing views. Some predict an explosive Bitcoin rally, citing strong institutional inflows and rising adoption.
