Peter Schiff’s Dire Warning: Bitcoin ’Topping Out’ Just as Fed Rate Cuts Loom

Gold bug Peter Schiff fires another shot across Bitcoin's bow—claiming the digital asset's rally is running out of steam right before anticipated Fed rate cuts.

Timing or Trolling?

Schiff, long a crypto skeptic, insists Bitcoin's recent highs signal a peak, not a breakthrough. His warning lands just as traders eye potential monetary easing—a classic bullish trigger for risk-on assets.

Market Ignores the Noise

Bitcoin hodlers shrug. They’ve heard it before: the same doom-and-gloom rhetoric that’s accompanied every run-up since 2017. Meanwhile, institutional inflows keep climbing—because nothing says 'store of value' like a volatile, decentralized asset that Wall Street suddenly can’t get enough of.

Fed Cuts: Fuel or Fizzle?

If history’s any guide, loose monetary policy tends to lift all speculative boats—even the ones gold enthusiasts love to hate. Schiff’s pessimism feels more like performance art than portfolio advice. But then again, in crypto, even the broken clocks are right twice a cycle.

So—another day, another prediction. In a world where 'financial experts' still think inflation is transitory, maybe take the L with a grain of salt.

Is Peter Schiff Right That Fed Rate Cuts Won’t Matter For Bitcoin?

Bitcoin faces near-term selling pressure ahead of the Federal Reserve’s September 17 meeting, where a 25 basis point rate cut is broadly expected. The jury is out on whether the MOVE is priced in, yet traders see the decision as a potential inflection point for risk assets.

BTC is holding NEAR $115,400 after failing to break through $116,000 resistance.

Peter Schiff Warns of a Bitcoin Top: Why Are Gold, Silver, and Equities Shining While Bitcoin Stalls?

The divergence is clear: while the NASDAQ and S&P 500 hover at record highs and Gold pushes through new breakouts, Bitcoin has struggled to sustain rallies. The Bitcoin/Gold ratio sits near 31.53 XAU, down 0.87%, underscoring Schiff’s point about lagging performance.

Yet not everyone agrees.

“I agree with you on Fed policy mistake. But you underestimate Bitcoin… It will most likely break out and make a lot bigger gains than gold and silver.” – crypto investor reply on X.

Schiff pushed back, countering that if this were “just consolidation,” Bitcoin should already have broken out.

Can Bitcoin Break $116K Resistance?

Futures positioning has turned slightly positive, with CoinGlass reporting new inflows into Bitcoin derivatives ahead of the FOMC. Spot flows, however, remain negative as selling pressure dominates.

While Schiff’s warnings dominate headlines, other analysts remain firmly bullish. Kraken’s Dan Held noted that long-term demand dynamics favor upside, while market commentator Ted Pillows highlighted Bitcoin’s supply-demand imbalance:

Rate cuts are generally bearish in the short term.

This is because the Fed usually cuts rates when the economy is in some turmoil.

Just take a look at US stock indices after 3 months of the first rate cut.

S&P 500: Flat

Nasdaq: Barely positive

Russell 1000 and Russell 2000:… pic.twitter.com/en9hNubWML

— Ted (@TedPillows) September 14, 2025

99Bitcoins analysts argue Bitcoin must reclaim $114K as solid support to set up a sustained push toward $117K and beyond. Failure to do so risks trapping BTC in a sideways channel between $110K and $115K until the Fed delivers clearer forward guidance.

With the September rate cut almost guaranteed, Powell’s tone will be the real catalyst. A dovish outlook could spark the breakout Schiff insists won’t come.

Key Takeaways

• Is Bitcoin critic Peter Schiff finally going to be right for the first time in 16 years about Fed rate cuts?
• Schiff pushed back, countering that if this were “just consolidation,” Bitcoin should already have broken out.