Peter Schiff Warns Gold’s $4K Surge Could Trigger a Major Bitcoin and Crypto Sell-Off

Bitcoin Price

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  • Schiff warns gold’s rise could pull investors away from Bitcoin and crypto.
  • Bitcoin slips below $122K amid profit-taking and macro uncertainty.
  • Debate grows over whether Bitcoin or gold offers better protection in volatile markets.

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Economist and long-time gold advocate Peter Schiff has reignited the debate between gold and Bitcoin. In a recent post on X, Schiff predicted that as gold approaches the $4,000 per ounce mark, investor sentiment could shift sharply away from cryptocurrencies.

He argued that Wall Street’s enthusiasm for digital assets has reached “unsustainable levels” and that gold’s next rally could pull liquidity from crypto markets. “It’s very likely that Bitcoin and everything crypto are about to be rugged by gold,” Schiff said.

Bitcoin Slips as Market Sentiment Turns Cautious

Bitcoin, which recently hit an all-time high of $126,000, has pulled back to below $121,800 amid mounting macro uncertainty. Concerns over a possible U.S. government shutdown and profit-taking have added pressure. Ethereum, XRP, and Solana fell between 4% and 6%, while BNB managed small gains.

According to CoinMarketCap, the total crypto market capitalization dropped to around $4.16 trillion, signaling a cooling phase after weeks of strong gains. Traders appear to be locking in profits as risk appetite fades across markets.

Gold’s Safe-Haven Appeal Gains Renewed Attention

Schiff’s argument reflects growing investor unease about market volatility and global instability. As inflation fears and fiscal uncertainty rise, gold’s reputation as a hedge could strengthen. Schiff noted that while fewer investors currently buy gold, that could change rapidly if prices keep climbing.

Also Read: Bitcoin Dips Ahead of FOMC Minutes and Powell Speech: Key Levels to Watch

Bitcoin’s Supporters Push Back

Not everyone agrees with Schiff’s outlook. Tech entrepreneur Brian Shuster countered that Bitcoin’s scale and adoption make it more resilient than gold. He argued that Bitcoin’s utility and growing integration in global finance could help it withstand cyclical downturns.

Schiff’s warning highlights a potential turning point: if gold’s rally accelerates, crypto markets could face renewed pressure. Whether Bitcoin proves resilient or succumbs to investor rotation remains to be seen—but for now, the tension between digital and traditional stores of value is heating up once again.

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.