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- Bitcoin is struggling to surpass $116,000 as selling pressure mounts.
- Analyst Peter Schiff warns of topping out amid Fed rate cut expectations.
- Altcoins are showing relative strength while investors await market direction.
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Bitcoin (BTC) is showing signs of caution as investors brace for the Federal Reserve’s September 17 FOMC meeting. While the leading cryptocurrency posted a 4% weekly gain, selling pressure has increased, keeping BTC from breaking past its all-time highs. Analyst and Bitcoin critic Peter Schiff warns that the digital asset may be topping out, even as the broader crypto market anticipates potential market-moving interest rate decisions.
Schiff Warns Against Fed Rate Cuts
Peter Schiff expressed concern over the Fed’s planned interest rate reduction, projected at a minimum of 25 basis points. He argues that cutting rates amid rising inflation could exacerbate economic risks. Schiff highlighted that traditional safe-haven assets, such as gold and silver, are currently outperforming Bitcoin in times of uncertainty.
“Given that Bitcoin is still 15% below its 2021 peak when priced in gold, investors should remain cautious,” Schiff said. He also noted that while equity markets like the NASDAQ and S&P 500 recently hit record highs, Bitcoin has struggled to capitalize on optimism surrounding the rate cut.
Maybe, maybe not. Given what's happened if this was just a consolidation I should already broken out. Given that Bitcoin is still 15% below its 2021 peak priced in gold should be a concern.
— Peter Schiff (@PeterSchiff) September 14, 2025
Market Experts See Typical Crypto Behavior
Crypto analyst Ted Pillows offered a historical perspective, noting that U.S. interest rate cuts often trigger short-term weakness in risk assets, including equities. However, he pointed out that digital assets can bottom ahead of traditional markets, suggesting Bitcoin and altcoins might rebound sooner than stocks.
Pillows also highlighted the relative strength of altcoins in September, pointing to the rising altcoin season index. This trend contrasts with Bitcoin’s current resistance at $116,000, showing that investors may be reallocating funds within the crypto ecosystem.
Also Read: Bitcoin Surpasses the Magnificent 7 as Corporate Treasuries Top 1 Million BTC
Looking Ahead
Goldman Sachs predicts the Fed will deliver three consecutive 25-basis-point cuts in September, October, and December, with two additional reductions expected in 2026. These moves aim to lower the federal funds rate to 3%–3.25%. As the crypto market navigates this uncertain economic environment, traders and investors are waiting on the sidelines for clearer signals on the next directional move.
While optimism exists around rate cuts, Peter Schiff’s warnings and the current market dynamics suggest that caution may be warranted, especially for Bitcoin holders looking to sustain gains above previous highs.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
