Peter Schiff Claims Bitcoin Is Topping Out Ahead of Fed Rate Cut - Here’s Why He Might Be Wrong
Gold bug turned crypto critic Peter Schiff fires another warning shot at Bitcoin—just as the Fed prepares to potentially slash rates.
Schiff's latest bearish call hinges on a classic argument: Bitcoin's recent run-up looks overextended. He's betting that traditional market forces will trump crypto's narrative-driven momentum once the Fed makes its move.
But here's the twist: Bitcoin has repeatedly shrugged off macroeconomic warnings and skeptic predictions. It didn't flinch during banking crises, inflation spikes, or previous rate hikes—so why would a rate cut be its downfall?
If history's any guide, easier money tends to flow toward risk assets. And in 2025, crypto isn't the fringe bet it once was. Institutional adoption, ETF flows, and real-world utility are changing the game.
Sure, Schiff's been wrong before—often loudly. But even a broken clock is right twice a day. Or in finance, whenever it helps sell more gold.
The Bitcoin price is trading near $ 116,000, but it’s struggling to break higher ahead of the Federal Reserve’s September 17 FOMC meeting. Despite a 4% gain over the past week, the cryptocurrency has yet to surpass its all-time highs. This hesitation has raised doubts about whether momentum is fading as traders wait for clarity on interest rate cuts.
Peter Schiff Warns Bitcoin Is “Topping Out”
Economist and long-time Bitcoin critic Peter Schiff believes the cryptocurrency is running out of steam.
He argued that lowering rates while inflation remains high could worsen economic risks.
Schiff also compared Bitcoin’s performance with traditional assets:
- “Bitcoin is still about 15% below its 2021 peak when priced against gold,” he noted.
- “Even equity markets like the S&P 500 and Nasdaq are at record highs, while Bitcoin continues to face resistance.”
According to him, this shows investors are prioritizing Gold and silver as safer bets.
Why Fed Rate Cuts Bring Market Uncertainty
The Fed is widely expected to cut rates by at least 25 basis points on September 17. Analysts at Goldman Sachs even predict three consecutive cuts into December. While rate cuts often support markets, some warn they can be bearish in the short term.
Crypto expert Ted Pillows explained:
This uncertainty, he said, could weigh on bitcoin in the near term.
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Crypto Market May React Differently
Not everyone agrees with Schiff’s bearish view. Pillows added that crypto may behave differently than stocks:
He also pointed out that altcoins are already showing strength, with the Altcoin Season Index climbing higher. This suggests capital may be rotating from Bitcoin into other crypto assets.
Bitcoin at a Crossroads
For now, Bitcoin sits at a critical level. Schiff highlights gold’s strength, while others see crypto’s resilience. Whether Bitcoin breaks resistance or altcoins continue leading, the coming weeks around the Fed’s decision could be decisive for the entire market.
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FAQs
Is altcoin season starting now?Yes, the Altcoin Season Index is moving higher, showing altcoins are gaining momentum while Bitcoin consolidates.
Will Fed rate cuts push Bitcoin higher?Analysts are divided. Some believe rate cuts could cause short-term weakness as markets price in economic slowdown, while others argue crypto could recover faster than traditional assets.
Why is gold performing better than Bitcoin right now?Gold and silver are rallying as traditional safe-haven assets, while Bitcoin is consolidating below its all-time highs. Schiff argues this shows investor preference for metals.
Could altcoins outperform Bitcoin in 2025?Yes, many analysts believe altcoins may continue outperforming as capital rotates away from Bitcoin into Ethereum, Solana, and other projects with strong ecosystems.
