Investor Peter Schiff has intensified warnings about a potential Bitcoin downturn, arguing that the cryptocurrency could be the first major asset to falter as capital flows back into traditional safe havens. Schiff highlights the rising prices of gold and silver as signals of weakening confidence in the U.S. dollar, suggesting Bitcoin’s role as a hedge may be undermined.
According to Schiff, those who purchased Bitcoin to protect against a dollar collapse may be caught off guard if the digital asset suffers a sharp sell-off. His commentary coincides with recent precious metals gains, including silver climbing above $66 per ounce in a single session and gold surpassing $4,300. He forecasts that silver could approach $70 by year-end, while gold may set new record highs in the near term.
Other analysts share similar caution. Bloomberg Intelligence strategist Mike McGlone noted that declining demand could push Bitcoin to substantially lower levels. Additionally, 10x Research predicts redemptions totaling $10–$20 billion from crypto hedge funds, which could amplify year-end selling pressures.
Gold and Silver Surge Amid Dollar Weakness
Precious metals have benefited from a softening U.S. dollar and market anticipation of monetary easing. The dollar remains near a two-month low, enhancing the appeal of gold and silver as stores of value.
Low interest rate expectations for 2026 have further reinforced this trend. Analysts predict the Federal Reserve may cut rates twice early next year, making non-yielding assets such as gold and silver more attractive.
Key market drivers include:
- Dollar near two-month lows
- Anticipation of multiple Fed rate cuts in 2026
- Flight to traditional safe havens amid economic uncertainty
- Rising industrial and investment demand for silver
This environment underlines why precious metals are climbing, while Bitcoin, lacking intrinsic yield, may face increased selling pressure.
Market Outlook for Bitcoin and Metals
Despite bearish forecasts for Bitcoin, proponents like Michael Saylor remain optimistic about the long-term outlook. Saylor predicts Bitcoin could eventually surpass gold in total market value over the next decade, reinforcing its status as a strategic store of wealth.
In the near term, however, Bitcoin traders are cautioned to monitor key support levels. A breakdown below $2,800 could signal accelerated downside, while reclaiming $3,000–$3,100 could restore bullish momentum.
Meanwhile, gold and silver continue to draw attention as hedges against potential dollar weakness and broader economic instability. Investors are advised to watch U.S. job reports and Federal Reserve policy signals closely, as these will likely dictate the next significant moves in both cryptocurrencies and precious metals.
In sum, the tug-of-war between rising precious metals and potential Bitcoin risk highlights the complex dynamics shaping asset allocations at the end of 2025.
