Gold advocate and strong Bitcoin critic Peter Schiff has once again taken aim at the world’s largest cryptocurrency, dismissing Bitcoin’s recent Venezuela-fueled rally as little more than speculative hype.
In a post on X, Schiff urged investors to book profits from Bitcoin and rotate into traditional safe-havens like gold, noting that there’s lots of BS from the pumpers spinning this news as being bullish for Bitcoin.
He wrote,
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“Bitcoin has been caught up in the Venezuela-inspired rally. It’s back above $94.5K. There’s lots of BS from the pumpers spinning this news as being bullish for Bitcoin. Don’t believe the hype. Just take advantage of the rally to sell and use the proceeds to buy real gold instead.”
In a follow-up post, Schiff pointed to Bitcoin’s quick drop from $94,000 to around $92,000, reiterating his call to sell during rallies and invest in gold, aligning with his long-standing view that Bitcoin lacks intrinsic value compared to precious metals.
Schiff’s comment was however met with reactions largely mocking his bearish stance on Bitcoin, with many highlighting his history of inaccurate predictions, while the event underscores Bitcoin’s role as a hedge in geopolitical crises. Though gold has outperformed it over the past decade with a 150% return versus Bitcoin’s volatility-driven gains.
Recall that on Monday, Bitcoin traded higher, climbing as high as $94,750 following the U.S capture and extradition of Venezuela President Nicolas Maduro. The rally came after the crypto asset had long ranged between the $80,000 to $90,000 price zone.
Singapore-based digital asset trading firm QCP Group said in a note that the move coincided with equity gains and weaker oil prices after the U.S operation in Venezuela.
“Crypto’s recent alignment with broader risk assets may signal a regime shift and the strengthening of bullish narratives to start the year”, the firm wrote, adding that the Venezuela shock “could serve as a near-term catalyst for BTC”, partly due to the disinflationary impulse from lower oil prices”.
The rally wasn’t isolated to Bitcoin; altcoins and related assets followed suit, amplifying the momentum. Analysts attributed this to a combination of factors such as renewed optimism in global trade, easing inflationary pressures from lower energy costs, and speculative fervor in the crypto space.
Today, the price of Bitcoin dipped below $90,000, trading as low as $89,265. Several factors contributed to this reversal. Cooling U.S. economic data, including softer-than-expected job reports and manufacturing indices, dampened the risk-on sentiment.
Several traders were reportedly caught off guard, with Coinglass data showing that the move triggered the liquidation of roughly $128 million in long positions. This highlights the risks faced by leveraged traders amid a tight trading range.
The sell-off follows significant outflows from US spot Bitcoin ETFs, with data from SoSoValue showing $486 million in net redemptions (outflows) on Wednesday, marking the largest single-day outflow since November 20.
Additionally, the initial excitement over the Maduro capture gave way to uncertainty, as questions arose about Venezuela’s political transition, potential legal challenges to the U.S. action, and its long-term impact on oil supplies. Crypto markets, known for their sensitivity to macroeconomic shifts, amplified these concerns, leading to increased selling pressure.
Despite the BTC price decline, some analysts caution against reading weakness into the crypto asset price action.
“Bitcoin isn’t weak; it’s mechanically suppressed. Dealer hedging—selling rallies and buying dips to stay neutral—has pinned price in a tight $90K–$95K range, defining the $90K support and the $100K resistance wall,” said analyst Crypto Rover, in a post on X.
At the time of writing this report, Bitcoin has reclaimed the $90,000 zone, trading as high as $90,816. Thursday’s initial flash crash illustrates the ongoing tension between institutional hedging, retail positioning, and macroeconomic factors in shaping Bitcoin’s price.
As markets digest these developments, investors are left pondering the fragility of hype-driven rallies. Schiff’s commentary, while polarizing, offers a cautionary tale: chase short-term gains at your peril. For those heeding his advice, physical gold dealers report increased inquiries, suggesting some are indeed diversifying away from crypto.
Outlook
Whether Bitcoin rebounds or continues its slide remains to be seen. But in Peter Schiff’s view, the writing is on the wall, digital assets may glitter, but they aren’t gold. As geopolitical shifts continue to unfold, the true test of value will be endurance, not excitement.
The $100,000 level remains the psychological and technical target for many traders. Still, experts agree that time and market structure will dictate the next meaningful breakout.