Peter Schiff’s Dire Warning: Bitcoin Topping Out Before Fed Cuts Hit
Gold bug sounds alarm as Bitcoin flirts with resistance—just as the Fed prepares to slash rates.
Schiff's Skepticism Strikes Again
The perennial crypto critic doubles down on his bearish stance, claiming Bitcoin's rally is running on fumes. No charts or data—just pure Schiff conviction against the digital gold narrative.
Fed Cuts: Fuel or Foe?
With monetary easing looming, conventional wisdom says risk assets soar. Schiff argues Bitcoin's already priced it all in—and then some. Classic 'buy the rumor, sell the news' play, but with extra pessimism.
Crypto's Resilience Test
Market watches to see if Bitcoin shrugs off the noise or finally buckles under weight of its own hype. Traders balance Schiff's warnings against institutional inflows—because nothing says 'sound investment' like a volatile asset debated on Twitter.
Another day, another prediction from a guy who'd rather bury money in his backyard than acknowledge blockchain exists. The irony? His warnings often precede rallies.
Traditional assets outperform Bitcoin
Schiff pointed out that traditional safe-haven assets like Gold and silver are gaining strength, while Bitcoin appears to be losing momentum. “The NASDAQ and S&P hit new record highs and gold hit a new record high. He added, “Given that Bitcoin is still 15% below its 2021 peak priced in gold should be a concern.”
He also highlighted that Bitcoin has not fully benefited from optimism around the Fed rate cut. While investors are buying both risk assets and safe havens, they are reportedly selling Bitcoin. Following last week’s crypto market rally, many investors are waiting on the sidelines for the next directional move.
Rate cut implications for crypto
Goldman Sachs forecasts that the Fed will reduce rates three times in September, October, and December, and further reductions in 2026, which may take the rates to 3-3.25%.
Historically, digital assets like Bitcoin often bottom before U.S. equities. Although, in September, altcoins have shown stronger gains than Bitcoin, suggesting that altcoin season may be underway.
Further, market expert Ted Pillows said that historically, U.S. interest rate cuts can create short-term bearish pressure on risk assets, signaling potential economic challenges.
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
For now, the market will be keen on the response of Bitcoin to the Fed’s decision, because the rate cut cycle could establish the next significant trend of the market.
Also Read: JPMorgan Says Bitcoin Is Too Cheap Compared to Gold
