Economist and gold advocate Peter Schiff has recently predicted a shift in investor focus. Schiff warned that Bitcoin and the wider crypto market may soon face headwinds as gold rises.
In a post on X, Schiff argued that Wall Street’s optimism around crypto has reached unsustainable levels. He suggested that if gold tops $4,000 per ounce, investors may rotate from digital assets to traditional safe-haven investments.
“it’s very likely that Bitcoin and everything crypto are about to be rugged by gold,” Schiff said. He added that a surge in gold prices could trigger a sell-off in Bitcoin and other cryptocurrencies.
Bitcoin recently retraced from record highs of $126,000, briefly dropping to below $121,800 amid fears of a three-week government shutdown in the United States. Other major cryptocurrencies, including Ethereum, XRP, and Solana, saw losses between 4% and 6%, while BNB managed modest gains.
The total crypto market capitalization dropped to around $4.16 trillion, signaling broad profit-taking after weeks of strong gains, according to CoinMarketCap.
However, tech entrepreneur Brian Shuster suggested that Bitcoin’s market adoption and growing capitalization could make it more resilient than gold.
Schiff responded that while gold purchases involve fewer investors, the trend could accelerate if prices continue to climb. He emphasized gold as a market hedge against market volatility, despite crypto being more popular with retailers.