Bitcoin is once again under pressure, and while many crypto investors are growing increasingly anxious, one long-standing critic is celebrating the latest correction. For U.S. economist and outspoken precious metals advocate Peter Schiff, the recent market reaction is clear evidence that Bitcoin’s time may be running out.
Schiff argues that the Federal Reserve’s return to monetary easing has triggered a shift away from the U.S. dollar toward traditional safe-haven assets such as gold and silver. “The Fed’s move back to quantitative easing sparked an exodus out of the dollar and into gold and silver,” Schiff stated. He added with clear satisfaction: “There was no exodus into Bitcoin, which actually depreciated even more than the U.S. dollar.”
The backdrop to this debate is the Federal Reserve’s decision on Wednesday evening to cut its benchmark interest rate by 25 basis points. Since the announcement, gold prices have risen by approximately 2% in U.S. dollar terms, while silver gained around 2.4%. Bitcoin, by contrast, fell nearly 3% and was trading at roughly $90,200 at the time of writing.
“Bitcoin was tested and it failed,” Schiff declared, referring to the cryptocurrency’s inability to recover following the Fed’s policy shift. He also criticized financial media outlets such as CNBC for focusing less on the rally in gold and silver and more on whether “Bitcoin will recover next year.”
Schiff left little ambiguity regarding his outlook. “The answer is no,” he said. “Bitcoin will continue to fall, while gold will continue to rise.” In the past, he has repeatedly compared Bitcoin to the historic tulip mania, arguing that its valuation is driven by speculation rather than intrinsic value. Not everyone shares this view, however, with Bloomberg ETF analyst Eric Balchunas among those who have openly dismissed such comparisons.
Schiff’s rhetoric has continued to escalate. In a recent post on X, he remarked: “Bitcoin isn’t just not the fastest horse in the race — it’s not even running. It’s time to send it out to pasture.” Unsurprisingly, these comments have drawn sharp reactions from the crypto community. One user responded pointedly: “You do realize you’re going to look incredibly foolish once Bitcoin starts moving again, right?”
Only recently, Schiff also warned that so-called Bitcoin whales were profiting at the expense of retail investors. According to him, small investors continue to hold their coins not out of conviction, but because they allegedly fail to recognize what he describes as a deeply flawed and manipulative market dynamic.
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