Economist Peter Schiff issued a warning on Wednesday to investors who are currently rotating profits from traditional commodity investments, such as gold and silver, into cryptocurrency-linked products including Bitcoin exchange-traded funds (ETFs) and Strategy Inc. (MSTR) stock. Schiff expressed skepticism about the durability of Bitcoin's ongoing rally and recommended a different approach for traders.
In a social media update, Schiff described this profit rotation as a "big mistake," advising market participants to consider cashing out from Bitcoin and MSTR stock. Instead, he advocates for reallocating capital back into precious metal-linked equities. This stance is consistent with an earlier statement made by Schiff this month, wherein he countered perceptions of Bitcoin's recent price uptick as indicative of bullish momentum, dismissing it as merely a narrative pushed by market promoters.
Market data from 2026 shows a notable start for both cryptocurrencies and precious metals, with significant year-to-date gains. Bitcoin, while not having yet reached its historical peak prices, has surged to levels last seen about two months prior, reflecting a resurgence in investor interest.
| Asset | YTD Gain |
|---|---|
| Bitcoin (CRYPTO: BTC) | +9.52% |
| Strategy Inc. (NASDAQ: MSTR) | +18.02% |
| iShares Bitcoin Trust ETF (NASDAQ: IBIT) | +11.66% |
| VanEck Gold Miners ETF (NYSE: GDX) | +12.93% |
| Spot Gold | +6.50% |
| Spot Silver | +23.90% |
The broader gains in digital assets and traditional commodities coincide with geopolitical developments in the Middle East and legislative progress concerning cryptocurrency market regulation. These dynamics have elevated related equities and ETFs, such as MSTR and Bitcoin-linked funds, alongside underlying asset prices.
Market sentiment indicators, such as betting odds on platforms like Polymarket, currently show that cryptocurrency investors assign a 57% probability that Bitcoin will outperform gold during the current year.
At the time of reporting, Bitcoin was trading around $96,291.02, reflecting a 1.04% increase over the preceding 24 hours, according to real-time data from Benzinga Pro. MSTR stock experienced a mixed session, closing 3.66% higher at $179.33 during regular trading hours but declining by 1.63% in after-hours trading. The iShares Bitcoin Trust ETF advanced by 3.49% by the close.
Despite these advances, MSTR shares exhibit a weaker price trajectory over short, medium, and long-term periods compared to other crypto-related equities, emphasizing the need for cautious evaluation from investors.
Investors and analysts seeking comparative insights into the relative performance and momentum of cryptocurrency-linked stocks can consult resources like Benzinga Edge Stock Rankings for updated metrics and trends.