Key Insights
- Bitcoin price is down 17.7%, but fear and loss-selling now match past bottom zones.
- Gold’s short outperformance looks similar to past times when Bitcoin formed a floor.
- Short-term holders already capitulated, which often reduces selling pressure and supports a rebound.
Bitcoin price has been weak for weeks now. The total crypto market cap dropped from about $3.94 trillion on October 6 to around $3.32 trillion now.
It even fell near $3.14 trillion earlier this month before bouncing a little. The bounce is small, but it made many traders ask if the market is trying to form a floor.
One person who jumped in again is Peter Schiff, a long-time Bitcoin critic. His new warning has started a fresh debate.
Here is how his claim fits with gold, with Bitcoin price action, and with on-chain signs that often appear near bottom zones.
Peter Schiff Is Usually Wrong About Bitcoin Price Bottoms?
Peter Schiff told traders to “sell Bitcoin before you get mauled.” He said this after gold price moved above $4,100 while Bitcoin price stayed near $93,000.
At first glance, his comparison looks clean. But Schiff has a long history of doing this at the wrong moment.
He posted similar warnings near the 2017, 2018, 2020, and 2023 bottom zones. Each time, the market was near a turning point.
That is why many traders treat his calls as emotional, not analytical.
The numbers look simple. Bitcoin is down around 17.7% in the past three months.
Gold is up close to 17% in the same window.
Schiff used this gap to show Bitcoin as the weaker asset. But this pattern has happened before near late-stage corrections, not fresh bear markets.
When gold outperforms Bitcoin price for a short time, it often shows fear in crypto. It doesn’t hint at a long bearish trend.
That is why his warning may be showing just stress, not something more alarming.
Another Bottoming Sign for Bitcoin Price?
Short-term holders are wallets that keep Bitcoin for only a few weeks or months. They are usually the first to panic.
During this latest drop, about 64,600 BTC was sent to exchanges at a loss. This is a large amount and shows these traders may have “given up.”
Sending coins to exchanges at a loss is called capitulation. It normally appears near the end of corrections.
When these holders finish selling, selling pressure slows on its own. In simple words, the market runs out of people who want to sell more.
This lines up with the small bounce for Bitcoin price from $93,000 and the slight recovery in the total market cap.
Fear Has Hit Levels We See Only Near BTC Bottoms
Market fear supports the bottom idea. The Fear & Greed Index fell to 9 out of 100, which is an extreme reading.
The last time fear was this low was in 2022, when Bitcoin was near $20,000. Extreme fear rarely shows up at the start of a bear market.
It often appears near the end of one. That is why many traders believe this panic may be the final leg of the correction.
When we combine loss-selling, extreme fear, and a small bounce after a big drop, the pattern starts to look like a bottom zone.
Peter Schiff’s warning sounds about right. But the data behind the market tells a different story.
Gold price has moved up, but the recent dip in Bitcoin price fits more with a late correction than a deep bear phase. And Schiff’s history shows he often posts these messages near major lows, not highs.
Short-term holders have already suffered heavy losses. Fear is at levels we see only near cycle floors.
And the market has already bounced off the $3.14 trillion area.
Together, these signs point to one simple idea: Peter Schiff’s warning may have appeared at the same moment the Bitcoin price is trying to form a bottom again.