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Key Takeaways
- Peter Schiff predicts Bitcoin will crash before the U.S. dollar.
- The Bitcoin critic warned of a major U.S. economic crisis.
- Technical analysis suggests further downside for Bitcoin.
Bitcoin critic and longtime gold advocate Peter Schiff has issued a renewed warning that both Bitcoin and the U.S. economy are approaching major downturns, as Bitcoin prices slide and precious metals rally to new highs.
Schiff argues that rising gold and silver prices reflect deep structural weaknesses in the U.S. dollar and Treasury market, while warning that Bitcoin investors may be caught off guard.
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Bitcoin the First Casualty, Says Peter Schiff
In a post on X , Schiff suggested that Bitcoin is likely to experience a sharp crash before any broader collapse of the U.S. dollar, directly challenging the idea that Bitcoin serves as a hedge against currency debasement.
“The first casualty of the gold and silver surge will likely be Bitcoin,” Schiff wrote. “Before a U.S. dollar crash, we will likely get a Bitcoin crash.”
He claimed this outcome would surprise Bitcoin holders who purchased the asset as protection against a weakening dollar.
“They jumped from the frying pan into the fire,” Schiff added.
Schiff has consistently argued that Bitcoin lacks intrinsic value and is driven primarily by speculative demand.
During recent remarks at Binance Blockchain Week, he reiterated his stance, calling Bitcoin a “ponzi scheme” and likening it to a “casino.”
Warning of a Looming U.S. Economic Crisis
Schiff also warned that the U.S. economy is nearing what he described as the most severe economic crisis in modern history.
“The U.S. economy is teetering on the brink of the biggest economic crisis of our lifetimes,” he said.
According to Schiff, surging gold and silver prices will eventually undermine confidence in the U.S. dollar and Treasuries, triggering higher consumer prices, rising bond yields, and increased unemployment.
A long-term bull on gold, Schiff maintains that the metal holds far greater value than Bitcoin due to its tangible nature and its historical role as a medium of exchange.
In recent weeks, gold has continued to rally , reaching a new all-time high of $4,345 in November.
Prices eased slightly on Wednesday as some investors took profits, with gold trading around $$4,323 at the time of reporting.
Bitcoin Slide Deepens
Bitcoin’s recent price action has reinforced bearish sentiment among technical analysts.
CCN analyst Valdrin Tahiri said the current decline appears to be nearing its final phase within a broader corrective structure.
“The wave count suggests that the Bitcoin decline is in its final leg,” Tahiri said.
According to his analysis, Bitcoin has completed a five-wave downward movement following its all-time high. Tahiri believes the recent bounce marked the end of wave four, with wave five now underway.
He identified a potential downside target between $70,100 and $72,000, based on Fibonacci retracement levels and wave projections.
“Once the Bitcoin price reaches that level, a massive bounce could occur,” Tahiri added.
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