Peter Schiff Declares ’Bitcoin Topping Out’ – Will the Crypto Critic Finally Be Right?

Gold bug Peter Schiff fires another shot across Bitcoin's bow—claiming the digital asset has peaked. His timing? Historically terrible.

The perennial crypto skeptic's latest prediction hits as institutional adoption reaches fever pitch. BlackRock's spot ETF just crossed $30 billion in assets. MicroStrategy keeps stacking sats like there's no tomorrow.

Schiff's track record speaks volumes. Called Bitcoin's demise at $1,000, $10,000, and $60,000. Meanwhile, the asset he champions—gold—moves with all the excitement of a FDIC-insured savings account.

Market cycles favor those who build rather than bash. While Schiff tweets, developers ship. The Lightning Network now processes millions daily. Ethereum's merge slashed energy use by 99%. Real utility trumps tired rhetoric.

Maybe he'll get lucky this time. Even broken clocks are right twice daily—though in crypto, that's barely enough time for three 30% corrections and a new ATH.

Key Takeaways

What’s happening with Bitcoin ahead of the September rate cut?

Bitcoin is facing near-term selling pressure, even as traders eye the upcoming policy shift for potential market momentum.

Why is Peter Schiff warning about Bitcoin now?

Schiff argues that Bitcoin is “topping out,” noting that while gold and silver are rallying, Bitcoin has struggled to capitalize on the Optimism surrounding the Fed’s move.

As the Federal Reserve prepares for its anticipated rate cut in September, the crypto market is bracing for potential ripple effects, with Bitcoin [BTC] once again in the spotlight.

Optimism is high among some market participants, fueled by expectations that lower interest rates could reignite bullish momentum across digital assets.

However, caution is creeping into the narrative.

Peter Schiff takes a jab at Bitcoin

Bitcoin critic Peter Schiff has warned that BTC showed early signs of “topping out” ahead of the 17th of September FOMC meeting.

Taking to X (formerly Twitter), Schiff noted, 

“The Fed is about to make a major policy mistake by cutting interest rates into rising inflation. Gold and silver have broken out, with the rally finally confirmed by mining stocks leading the way. Yet instead of breaking out, Bitcoin is topping out. Time to change horses HODLers.”

Meanwhile, traditional metrics also hint at a tempered outlook.

For instance, the Bitcoin/Gold ratio stood at 31.53591 XAU, down 0.87% according to TradingView.

The debate on rate cuts

Fed Chair Jerome Powell was widely expected to confirm a policy shift at the FOMC meeting, with economists predicting a 25-basis-point cut.

Schiff argued the move could backfire, warning that cutting rates into rising inflation WOULD deepen risks. He noted gold and silver’s strength versus Bitcoin’s stagnation, with the NASDAQ and S&P 500 at record highs.

Needless to say, his stance has sparked pushback from the crypto community, with X users questioning his bearish outlook and defending Bitcoin’s potential amid market volatility.

One reply read,

“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.”

Replying to which, Schiff said, 

“Maybe, maybe not.  Given what’s happened if this was just a consolidation I should already broken out.  Given that bitcoin is still 15% below its 2021 peak priced in gold should be a concern.”

What do analysts have to say?

Echoing Schiff’s remarks, Dan Held, Head of Marketing at Kraken, took to X and noted, 

Source: Dan Held/X

But, crypto market expert Ted Pillows believes Tom Lee predicts Bitcoin will hit $3,000,000. He said, 

“You know, 95% of all Bitcoin’s been mined, but 95% of the world doesn’t own Bitcoin. So I just think that there’s still a huge demand versus supply imbalance, meaning there’s a lot more potential buyers of Bitcoin over the next 10 years.” 

What’s ahead?

In the NEAR term, momentum could remain neutral-to-bearish, with BTC consolidating around $115,104.15 at press time.

At the end, analysts are also suggesting that a potential breakout could materialize once gold’s rally peaks, setting the stage for the next leg in Bitcoin’s price journey.