Peter Schiff Warns Precious Metals Rallying May Trigger Bitcoin Sell-Off

Peter Schiff, long known for warning about fiat and cryptocurrency weakness and praising gold and silver, is now predicting a Bitcoin (BTC) crash before a U.S. dollar collapse, and he believes it will surprise many investors who bought Bitcoin as a perceived safe haven.

Specifically, Schiff has recently argued that when precious metals surge, Bitcoin could be the first major casualty. According to his view, shared on December 17, investors who bought Bitcoin to protect themselves against a U.S. dollar crash may instead suffer significant losses if BTC weakens first.

Schiff’s warning flips the script on a common narrative in crypto markets. For years, many Bitcoin proponents have positioned the asset as a hedge against inflation and currency debasement, a digital store of value immune to the weaknesses of fiat money.

His perspective suggests that narrative could be tested in ways supporters aren’t expecting.

Why Schiff Thinks Bitcoin Could Fall First

Schiff’s argument hinges on the idea that gold and silver, centuries-old stores of value, may start outperforming Bitcoin as economic stress builds. In this scenario, capital flows into traditional precious metals before digital alternatives, putting downward pressure on BTC prices.

His line of thinking is rooted in historical behavior. Precious metals have long been viewed as defense mechanisms against monetary instability, while Bitcoin’s role in this context is relatively new and unproven by long-term cycles of economic stress.

If gold and silver strengthen substantially, Schiff suggests that investors may rotate out of crypto and back into tangible assets that have withstood past currency crises.

For the time being, BTC is trading at $86,415.67, up 0.13% on the day, down 6.97% across the week, and accumulating a loss of 9.6% on its monthly chart, according to the most recent price data.

What This Means for Investors

Schiff’s message underscores a broader truth about market psychology, according to which crowd consensus can flip quickly. When too many investors share the same belief, such as that Bitcoin will protect against dollar weakness, then markets can react differently than expected.

A sudden reversal in Bitcoin’s price before a broader currency event would ripple across crypto markets, affecting sentiment, leverage positions, and broader risk assets. For traders and long-term holders alike, that kind of scenario emphasizes the need for risk management rather than blind conviction.

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