Prominent gold advocate and crypto skeptic Peter Schiff has issued a stark warning: that Bitcoin and other cryptocurrencies may be “rugged by gold” as the precious metal continues its aggressive rally.
What Schiff Means by “Rugged by Gold”
In his recent commentary, Schiff framed his view in the context of gold’s outperformance. As gold climbed above $4,000 per ounce, he argued that this strength could undercut Bitcoin, pressuring crypto markets and dragging down altcoins along with it.
Wall Street is so bullish on crypto that it’s hard to imagine it going much higher from here. Instead, it’s very likely that Bitcoin and everything crypto are about to be rugged by gold. As gold tops $4k, it’s likely that Bitcoin will sell off, taking the rest of crypto with it.— Peter Schiff (@PeterSchiff) October 7, 2025
He described Bitcoin’s recent gains as part of a bear-market rally that lacks the strength to overpower gold’s trend. Unless Bitcoin can outpace gold in its next leg, Schiff believes that gold’s momentum could “rug” crypto assets—that is, leave them trailing or exposed to downside.TradingView
Market Context & Recent Price Moves
Bitcoin had recently dipped more than 3% from its highs, falling to around $120,702 during intraday trading, as gold's rally gathered attention.
The crypto market’s weakness has been accompanied by significant on-chain transfers, including roughly $3.9 billion in coins moving across chains, coinciding with the market declines.
Schiff’s critique also includes his view that the U.S. Federal Reserve’s policies are misguided, and that gold’s rally signals deeper macro imbalances—further reinforcing his conviction about gold’s dominance in the current cycle.
Why This Matters to Investors
- •Relative outperformance: If gold continues to surge and BTC fails to keep pace, investors may rotate into gold—and away from crypto.
- •Volatility risk: Schiff’s framing suggests that Bitcoin and altcoins are vulnerable if gold accelerates, especially for traders betting on further highs in crypto.
- •Macro signals: The tension between gold and crypto often reflects broader capital flows, inflation expectations, and risk sentiment.