Zinger Key Points
- Peter Schiff argues that selling gold stocks to buy Bitcoin ETFs after Trump’s election victory was a major mistake.
- He predicts the next big move will be investors dumping Bitcoin in favor of gold as market sentiment shifts.
- Our government trade tracker caught Pelosi’s 169% AI winner. Discover how to track all 535 Congress member stock trades today.
Prominent Bitcoin BTC/USD Peter Schiff once again took to X to criticize the apex cryptocurrency and extol the benefits of gold compared to Bitcoin.
What Happened: In a post on Monday, Schiff highlighted that gold prices have surged past $3,000 as foreign central banks continue selling U.S. dollars to accumulate gold.
This shift has weakened the U.S. dollar while boosting foreign stock markets, in contrast to the decline in U.S. equities as investors rotate out of domestic assets.
In another post, Schiff pointed out that Bitcoin has dropped 15% year-to-date in 2025, while gold mining stocks have gained 25%.
He attributes this divergence to investors piling into Bitcoin ETFs after Trump's win, hoping for a pro-crypto policy shift.
Schiff now sees this as one of the worst-timed trades in history, arguing that market momentum is swinging back toward gold.
Also Read: Peter Schiff Blasts Government Crypto Investments As ‘Waste of Resources’
Why It Matters: In another X post on Sunday, Schiff compared the NASDAQ, Bitcoin and gold prices, stating that the NASDAQ is down 12%.
Based on Bitcoin's historical correlation with tech stocks, he warned that a 20% drop in the NASDAQ could push Bitcoin down to $65,000, while a 40% drop could send it crashing to $20,000 or lower.
If Bitcoin falls to $20,000 while gold rises to $3,800, BTC would have lost over 85% of its value relative to gold, raising doubts about its status as a store of value.
Schiff argued that if Bitcoin collapses, there would be no justification for the U.S. or any state government to hold BTC in a strategic reserve.
He also warned that such a scenario could lead to mass Bitcoin sell-offs from ETF investors, governments, and institutions like Strategy MSTR, putting highly leveraged Bitcoin holders at risk of financial collapse.
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