Peter Schiff has returned to his familiar stance, speaking out more forcefully than ever before. As the Federal Reserve recommenced purchasing Treasury securities under the guise of a liquidity operation, Schiff contended that the market’s reaction highlighted Bitcoin’s fundamental vulnerability. During this period, gold surged by over $50 in a single trading session, surpassing $4,325 once again; silver climbed beyond $64; and mining stocks experienced gains.
Conversely, Bitcoin moved in the opposite direction and failed to attract any noticeable influx of safe-haven capital.
Schiff’s position is straightforward and bold: if Bitcoin truly functioned as digital gold, he argues that the Fed’s renewed balance sheet expansion would have driven investment directly into BTC.
Capital Movement
Instead of flowing into cryptocurrencies, funds shifted toward precious metals while the dollar index weakened. Simultaneously, Bitcoin declined alongside other risk assets. Schiff described this scenario as a live stress test which Bitcoin did not pass—evidence that it behaves more like a speculative asset rather than a reliable monetary hedge when liquidity conditions shift.
“With quantitative easing back on track,” Schiff tweeted on December 12th, 2025, “gold and silver are sprinting ahead. Gold has gained another $50 this morning to rise above $4,325 again, and silver is up over 70 cents trading above $64.20. Bitcoin isn’t just losing ground—it isn’t even competing anymore. It might be time to retire it.”
Bitcoin had already dropped from its October peak near $120,000 by more than 30%, dipping into the low $90K range. Sellers dominated through November until buyers stepped in around the $80,600 level to provide support. The recent rebound appeared driven by technical factors rather than underlying narratives or fundamentals. Using this backdrop as context for his argument, Schiff claimed investors no longer view Bitcoin as an effective inflation hedge.
He also criticized how media outlets covered these developments—highlighting record-breaking moves in gold and silver were largely ignored while all attention remained fixated on Bitcoin price fluctuations. This disparity exposed what he believes is investor psychology at play rather than genuine economic fundamentals.
The accuracy of Schiff’s forecast will hinge on upcoming liquidity trends: if QE-fueled capital continues favoring metals over cryptocurrencies, his viewpoint will gain credibility. If instead Bitcoin recovers lost territory, siphoning off macroeconomic inflows, then his prediction risks joining many others who prematurely declared its demise.