Peter Schiff Predicts Bitcoin Will Be Rugged by Gold

The long-running rivalry between gold and Bitcoin has resurfaced. Economist and gold advocate Peter Schiff reignited debate over which of these two assets will dominate in the next market cycle. Schiff warned that Bitcoin and the wider crypto sector are “about to be rugged by gold.” He suggested investors could soon rotate toward traditional safe-haven assets.

Schiff Predicts $4,000 Gold as Bitcoin Retreats From Record Highs

Schiff, known for his long-standing criticism of Bitcoin, wrote on X that Wall Street’s optimism about crypto had reached unsustainable levels. He argued that with sentiment overly bullish, digital assets may struggle to advance further.

“It’s very likely that Bitcoin and everything crypto are about to be rugged by gold,” Schiff posted. He added that if gold tops $4,000 per ounce, “Bitcoin will sell off, taking the rest of crypto with it.”

Wall Street is so bullish on crypto that it’s hard to imagine it going much higher from here. Instead, it’s very likely that Bitcoin and everything crypto are about to be rugged by gold. As gold tops $4k, it’s likely that Bitcoin will sell off, taking the rest of crypto with it.

— Peter Schiff (@PeterSchiff) October 7, 2025

His comment came as Bitcoin briefly fell below $122,000, retracing from record highs set earlier this week. Bitcoin extended its rally, reaching an all-time-high of $126,000 as markets priced in a potential three-week U.S. government shutdown

With the exception of BNB which recorded gains, Ethereum, XRP and Solana recorded losses between 4% and 6%, according to TradingView data. The total crypto market capitalization dropped to around $2.58 trillion, signaling mild but broad profit-taking after weeks of strong gains.

Gold’s Rise Spurs Caution as Crypto Leverage Eases

In a reply thread, tech entrepreneur Brian Shuster questioned Schiff’s logic, suggesting the inverse could be true given Bitcoin’s market capitalization and adoption trends. Schiff responded that while only a small percentage of investors are buying gold, the shift marks a growing trend compared to last year.

He emphasized that “Bitcoin or crypto plays are far more common,” but said gold’s appeal as a hedge could grow sharply if its price continues to climb. In contrast to Schiff’s warning, veteran investor Paul Tudor Jones predicted an explosive Bitcoin rally.

Gold price has been steady near $2,700 per ounce. Hence, some analysts are expecting new highs if global inflation and rate-cut expectations persist. Schiff’s forecast of $4,000 gold implies a potential 50% surge. That would likely draw the attention of large institutions and may withdraw their funds off risky assets, such as crypto.