Peter Schiff Says Bitcoin Losing Steam As Gold Breaks Out
Noted crypto skeptic and Euro Pacific Capital CEO Peter Schiff is once again questioning Bitcoin’s strength, warning that the asset is running out of momentum just as the US Federal Reserve prepares to cut interest rates.
According to Schiff, Bitcoin’s recent performance shows weakness compared to traditional safe-haven assets.
“If this were only a consolidation phase, Bitcoin should have broken higher already. The fact that it remains 15% below its 2021 peak when measured in gold should worry investors,” he said.
His criticism sparked debate in the crypto community. One investor responded that while he agreed the Fed was making a mistake, Bitcoin’s upside potential was still underestimated:
“It will likely break out and deliver far greater gains than gold and silver in the long run.”
Analysts Push Back On Schiff’s Warning
Despite Schiff’s gloomy outlook, several market observers remain optimistic. Kraken’s Dan Held noted that long-term demand dynamics favor Bitcoin adoption. Market commentator Ted Pillows added:
“Rate cuts can cause short-term weakness, but crypto markets usually bottom before US equities — this time will be no different.”
CoinGlass data shows that Bitcoin futures positioning has improved ahead of the Federal Open Market Committee (FOMC) meeting, though selling pressure persists in the spot market.
Schiff’s History Of Criticizing Bitcoin
This isn’t the first time Schiff has taken aim at the leading cryptocurrency. Earlier this year:
- In April, he warned of a crypto market collapse under President Donald Trump’s administration.
- In May, he dismissed Vice President J.D. Vance’s remarks about Bitcoin’s wealth-creating potential.
- In July, he called new crypto bills in Congress an attempt to legalize a “Ponzi scheme.”
At the same time, others in the industry remain bullish. BitMine CEO Tom Lee told CNBC that Bitcoin and Ethereum could be the main winners of the Fed’s coming rate cuts, predicting sharp growth in the months ahead.
