Peter Schiff predicts a Bitcoin crash as gold hits an all-time high

Gold’s climb above $4,000 has led Schiff to label Bitcoin’s rally as a “bear market bounce” that is about to reverse.

Peter Schiff, a longtime critic of Bitcoin (BTC) and gold advocate, has predicted that the cryptocurrency will crash.

This comes as the precious metal is hitting new highs, with the price surging above $4,000.

Schiff Says Gold Could Beat BTC

The economist said on X that Wall Street’s enthusiasm for crypto had risen to unsustainable levels. He suggested that with sentiment turning excessively bullish, it could become difficult for digital assets to move higher.

“It is highly likely that Bitcoin and all things crypto are about to be attacked by gold,” the post said.

He added that as the metal crosses the $4,000 mark, it is likely that BTC will sell off and take the rest of the crypto with it.

The warning comes as Bitcoin’s price fell to around $121,600 on October 8, marking a decline of more than 3% from the recent all-time high above $126,000 reached early this week. Schiff claims the leading cryptocurrency’s current surge is just a “bear market rally,” claiming it won’t escape that label until it hits a new all-time high compared to gold. So far this year, the traditional safe haven has outperformed its digital counterpart by almost 17%.

The Bitcoin critic has previously claimed that the cryptocurrency “doesn’t live up to its hype” as digital gold. He explained that this is because it has fallen 20% against the metal since its peak in August, a drop that he said puts it in bear market territory.

Crypto community pushes back against comments

However, the X-crypto community disagrees with Schiff’s latest comments. Tech entrepreneur Brian Shuster challenged Schiff’s argument, asking if it was “the other day.” He suggested that it was actually gold, and not crypto, that could outperform, and wondered how Wall Street could be so bullish on the former when the latter’s smaller market cap gives it much more room to grow.

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The gold proponent countered that only a small percentage of investors buy it, adding that Bitcoin and other crypto investments remain much more common.

Elsewhere, Schiff predicted the price of the metal would skyrocket to $100,000 per ounce in the future. In an interview with The Lead-Lag Report, he stated, “If gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or to $100,000.” The economist further explained that this prediction is based on historical price movements and the declining value of the US dollar.