In recent statements that echo his long-standing skepticism towards Bitcoin, Peter Schiff has described the cryptocurrency’s protracted price rally as a bubble that is now deflating. Schiff, a staunch gold advocate and vocal critic of Bitcoin, predicts that the digital asset’s price could plummet to as low as $40,000.
As Bitcoin finds itself trading at approximately $63,208—50% below its peak of $126,000 in October 2025—the cryptocurrency continues to face significant headwinds. Schiff attributes Bitcoin’s recent price alterations to market volatility, particularly that driven by tariff-related stressors in October, which has sparked debates about the asset’s long-term viability.
In a post on social media platform X, Schiff criticized the financial media for what he perceives as a one-dimensional focus on Bitcoin’s potential rebound rather than acknowledging the possibility that its bullish phase was merely a speculative bubble. He remarked, “None of the coverage focuses on the possibility that the entire bull market was a bubble and that the air is finally coming out.”
While Bitcoin’s struggles are pronounced, gold has posted robust gains, which Schiff interprets as a manifestation of a broader trend toward de-dollarization. He contends that the increasing value of gold is indicative of a shift away from reliance on the U.S. dollar. Schiff has expressed particular discontent with the media’s portrayal of gold’s price movements, criticizing outlets like CNBC. He accused them of showcasing commentators who lack a comprehensive understanding of gold’s ascent, attributing it only to momentum rather than examining the fundamental economic factors in play.
In a recent podcast, Schiff argued that many institutional investors who entered cryptocurrency markets seeking an alternative to the dollar have been duped. Describing Bitcoin as a “digital gold scam,” he warned that the decline in Bitcoin’s price could redirect investor interest towards gold and mining stocks.
The Bitcoin ETF landscape reflects a changing tide, with allocations among major hedge fund holders dropping by 28% from Q3 to Q4 of 2025, as per CF Benchmarks data. Conversely, gold ETFs have seen assets grow to approximately $407 billion, more than double the $166 billion in Bitcoin ETFs. Investment patterns suggest that during periods of geopolitical tension in 2025, investors gravitated towards traditional safe-haven assets.
Schiff also predicted that central banks will continue to accumulate gold as they seek replacements for the dollar. Recent data suggests that central banks are on a record gold-buying spree, aligning with Schiff’s belief that the dollar’s value is diminishing. He stated, “I think de-dollarization is happening. That’s why gold is $5,000,” foreshadowing a potential future where gold becomes the favored reserve asset over the dollar.
Market analysts confirm that the price gap between spot gold and futures contracts has been exploited as part of an arbitrage strategy by funds that have sidestepped the performance of Bitcoin altogether. With Bitcoin’s instability and the steady rise of gold, the financial landscape appears to be shifting, raising questions about the future of these two assets amidst changing investor sentiments.
