Peter Schiff, a well-known financial commentator recognized for his critical stance on cryptocurrencies, recently reiterated his doubts about the sustainability of Bitcoin's market momentum. Through a series of posts on the social media platform X, Schiff openly criticized what he described as a "failed crypto Christmas," highlighting a divergence in performance between Bitcoin and traditional precious metals such as gold and silver during the recent holiday period.
Schiff noted that many Bitcoin investors had anticipated a significant breakout in the cryptocurrency's price as the year drew to a close. This anticipated surge, however, failed to materialize, with Bitcoin's price largely stalling while both gold and silver experienced upward movement. In light of this, Schiff argued that one of the most straightforward and profitable trades for the coming year, 2025, would involve selling Bitcoin and allocating funds into silver.
Further emphasizing his point, Schiff asserted that over the course of the last four years, Bitcoin's value has decreased substantially when compared to these traditional metals. Specifically, he noted a nearly 50% decline against gold and an even steeper drop exceeding 50% relative to silver. This comparative underperformance underpins his argument that cryptocurrency holders had effectively been gifted a rally during the Christmas period—a brief uptick in Bitcoin's price that served as an optimal opportunity to sell.
Expanding on these assertions in an appearance on CNBC, Schiff challenged prevailing commentary that encourages investors to purchase Bitcoin. He indicated that such perspectives may stem from a misunderstanding of both the dynamics governing gold and the intrinsic characteristics of cryptocurrencies. His critique centers on Bitcoin's inability to appreciate meaningfully even during bullish trends in other sectors, including technology stocks and precious metals.
Summarizing his viewpoint, Schiff stated plainly that the pool of potential new Bitcoin buyers has largely been exhausted. With limited or no upside prospects remaining, he contended that the only foreseeable trajectory for Bitcoin is downward. For investors who continue to hold Bitcoin—commonly referred to as "HODLers" in cryptocurrency jargon—Schiff offered a rather bleak outlook. The solitary silver lining, he suggested, is that if Bitcoin is headed for a decline, it would be preferable for this to occur swiftly rather than dragging out over an extended period.
This perspective highlights ongoing tensions in the evaluation between emerging digital assets and established commodities. Schiff’s assessment underscores his longstanding position favoring traditional precious metals as reliable stores of value, particularly given Bitcoin’s volatility and inconsistent performance relative to these assets over recent years.