Peter Schiff Predicts $4,000 Gold as Bitcoin Slides Under $122K
The battle between gold and Bitcoin has been reignited after Peter Schiff warned that crypto could soon be “rugged by gold...
Quick overview
- Peter Schiff warns that Bitcoin and the crypto market may soon be overshadowed by gold as a safe haven investment.
- Schiff predicts that if gold surpasses $4,000, it could trigger a significant decline in Bitcoin's value.
- The total crypto market cap has dropped to around $2.58 trillion amid rising inflation expectations and a potential US government shutdown.
- Schiff's comments highlight a growing caution among investors, with increasing interest in gold as a long-term inflation hedge.
The battle between gold and Bitcoin has been reignited after Peter Schiff warned that crypto could soon be “rugged by gold”. Schiff, a long time gold bull, says excessive optimism in crypto could be the trigger for a market reversal as investors turn back to traditional safe havens.
On October 7, 2025, Schiff posted on X (formerly Twitter) that Bitcoin and the entire crypto market is in an unsustainable phase. “It’s very likely that Bitcoin and everything crypto will be rugged by gold” he wrote, if gold goes above $4,000. Bitcoin will get smashed.
His comments came as Bitcoin retreated from its all time high of $126,000 and dipped below $122,000 due to the potential 3 week US government shutdown. According to TradingView data, most of the top cryptos followed the decline — Ethereum, XRP and Solana down 4-6%, only BNB up modestly. Total crypto market cap dropped to around $2.58 trillion, a broad but controlled profit taking.
Economist Peter Schiff predicts a $BTC crash, stating gold will "rug" crypto as gold reaches new highs above $4,000. He claims Wall Street's crypto enthusiasm is unsustainable, expecting a $BTC sell-off.
— Yeti Fi (@YetiFAi) October 8, 2025
Gold’s Strength and Investor Sentiment
Schiff’s bearish call on crypto was met with criticism from crypto enthusiasts but he said the renewed interest in gold is a sign of increasing caution from investors. When tech entrepreneur Brian Shuster challenged his view, Schiff replied that only a small percentage of investors are buying gold but that number is growing as economic uncertainty deepens.
He said “Bitcoin or crypto plays are way more common” but gold’s reputation as a long term inflation hedge will drive institutional interest if prices go up. Gold is trading around $2,700 and holding steady as interest rate cut expectations shift and inflation fears persist. Schiff’s $4,000 gold target implies a 50% rally which will pull capital out of speculative markets like crypto.
Market factors at play:
- Rising inflation expectations and delayed rate cuts.
- Institutional investors looking for safe havens.
- Slowing momentum in major crypto assets.
Crypto is Tested
But his warning is a pivot point for investors to consider store of value. Gold is going up and Bitcoin is consolidating below $122,000, markets are about to get reshuffled and will crypto be able to hold its own against physical gold in the next cycle?
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