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Peter Schiff is back in his favorite role, and he is more vocal than ever. As the Federal Reserve resumed buying Treasuries, framing it as a liquidity operation, Schiff argued that the market response exposed Bitcoin’s core weakness. Gold jumped by more than $50 in a single session, reclaiming levels above $4,325, silver surged past $64 and mining stocks followed.
Meanwhile, Bitcoin moved in the opposite direction, failing to attract any visible flight capital.
Schiff’s argument is simple and aggressive. If Bitcoin were truly digital gold, he claims, the Fed’s return to balance sheet expansion would have sent capital straight into BTC.
Money flow
Instead, capital flowed into metals, the dollar index weakened and Bitcoin sold off alongside risk assets. Schiff framed this as a stress test in real time that Bitcoin failed, calling it proof that the asset behaves more like a speculative trade than a monetary hedge when liquidity conditions change.
Bitcoin had already fallen from its October highs near $120,000, losing over 30% and hitting the low $90,000s. Sellers pressed it into November before buyers defended the $80,600 area. The subsequent rebound has been technical rather than narrative-driven. Schiff used this context to argue that the market is no longer buying into the idea of Bitcoin as an inflation hedge.
He also criticized media coverage, pointing out that record moves in gold and silver were treated as background noise, while Bitcoin price action remained the headline focus. For Schiff, this imbalance reveals more about investor psychology than anything about fundamentals.
Whether his call ages well depends on the next liquidity wave. If QE-driven capital continues to favor metals, Schiff’s case will strengthen. However, if Bitcoin reclaims lost ground and absorbs macro flows, Schiff's prediction will be added to the long list of premature obituaries.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team