Peter Schiff Warns Bitcoin Could Drop as Gold Surpasses $4,000 per Ounce

Highlights:

• Peter Schiff warns Bitcoin could face a sharp pullback as investors return to gold.
• Gold jumps past $4,000 amid geopolitical tensions and rising U.S. interest rate expectations.
• Younger investors increasingly view Bitcoin as a store of value, challenging gold’s role.

The long-standing rivalry between gold and Bitcoin is heating up again. Economist Peter Schiff, a well-known Bitcoin critic and gold supporter, reignited the debate by warning that the crypto market could soon face trouble. He said on X that Wall Street’s extreme optimism toward digital assets has become unsustainable. Schiff added that investors may soon turn to gold and other safe-haven assets as Bitcoin struggles to rise further.

Wall Street is so bullish on crypto that it’s hard to imagine it going much higher from here. Instead, it’s very likely that Bitcoin and everything crypto are about to be rugged by gold. As gold tops $4k, it’s likely that Bitcoin will sell off, taking the rest of crypto with it.

— Peter Schiff (@PeterSchiff) October 7, 2025

Gold Surges Above $4,000 as Bitcoin and Crypto Retreat

Schiff predicted that gold might soon outperform Bitcoin and the whole crypto market. “As gold tops $4k, it’s likely that Bitcoin will sell off, taking the rest of crypto with it,” he added. Bitcoin recently pulled back from its record high of $126,000, falling below $121,900 amid concerns over a possible three-week U.S. government shutdown. 

Other top cryptocurrencies like Ethereum, XRP, and Solana dropped between 4% and 6%, while BNB showed small gains. According to CoinMarketCap, the total crypto market value dropped to around $4.17 trillion. This shows that many investors are taking profits after several weeks of strong gains. Gold continued its historic rally on Wednesday, surpassing $4,000 per ounce for the first time. Investors rushed to the safe-haven asset amid rising geopolitical tensions and growing expectations of further U.S. interest rate cuts.

In a reply thread, tech entrepreneur Brian Shuster challenged Schiff’s argument. He said the opposite might happen, considering Bitcoin’s rising market cap and adoption. Schiff replied that although only a small portion of investors are buying gold, the number is growing compared to last year. He noted that Bitcoin and other crypto investments are still more common but added that gold’s popularity as a hedge could rise quickly if its price keeps increasing.

Is it OPPOSITE DAY?

You meant Wall Street is so bullish on Gold that it will be rugged by Bitcoin and crypto right?

I mean look at market cap of hold v Bitcoin and tell me which one has the most to give to the other.

— Brian Shuster – "Godfather of the Metaverse" (@Brian_Shuster) October 7, 2025

Banks and Investors Split on BTC and Gold Outlook

Major banks and funds are divided on Bitcoin’s next move. Goldman Sachs raised its 2026 gold target to $4,900 per ounce due to institutional demand and geopolitical risks. JPMorgan said Bitcoin is “undervalued versus gold” and expects investors to move from gold to BTC as risk appetite returns. Citigroup lowered its Bitcoin target for this year from $135,000 to $133,000 but expects it to reach $181,000 by the end of next year.

Following gold’s rise above $4,000 per ounce, Matthew Sigel from VanEck said on X that Bitcoin could reach half of gold’s market cap after the next halving. He noted that Bitcoin’s equivalent value might hit $644,000. Sigel added that younger investors are increasingly seeing Bitcoin as a store of value, a role traditionally held by gold. “Roughly half of gold’s value reflects its use as a store of value rather than industrial or jewelry demand, and surveys show younger consumers in emerging markets increasingly prefer Bitcoin for that role,” he said. 

We’ve been saying Bitcoin should reach half of gold’s market cap after the next halving. Roughly half of gold’s value reflects its use as a store of value rather than industrial or jewelry demand, and surveys show younger consumers in emerging markets increasingly prefer Bitcoin…

— matthew sigel, recovering CFA (@matthew_sigel) October 7, 2025