Bitcoins (CRYPTO: BTC) longtime skeptic Peter Schiff on Tuesday warned that Bitcoin holders who bought for the same reasons he bought gold will lose money, even when their economic forecasts prove correct.
Schiff’s Warning: Right Thesis, Wrong Asset
Schiff posted on X that Bitcoin holders who prepared for the economic crisis by buying BTC instead of gold face a “frustrating and unfortunate” outcome.
“It’s going to be very frustrating for Bitcoin HODLers, who actually bought Bitcoin for the same reasons I bought gold and silver, to see all the economic forecasts we had in common come true, but to end up losing more money than people who did nothing to prepare,” Schiff wrote.
Bitcoin and gold buyers share similar views on dollar debasement, inflation, and financial crisis risks, but gold will preserve wealth while Bitcoin crashes when those predictions materialize, according to Schiff.
2026 Crisis Will Be “Much Worse” Than 2008
Schiff escalated his warnings by predicting a 2026 financial crisis that will be worse than 2008, with one critical difference—this time, the damage stays contained to the U.S.
He argues the rest of the world will actually improve as countries stop propping up American consumer spending through cheap exports and Treasury purchases.
Schiff blames Trump’s economic policies for severing the relationship between the U.S. and its creditors.
He says the administration fundamentally misunderstands that foreign nations have been subsidizing American consumption by accepting dollars in exchange for real goods.
Schiff’s argument: when those countries stop financing U.S. deficits and accepting depreciating dollars, Americans face a currency crisis and collapse in living standards while the rest of the world redirects production to their own economies.
Gold Outperformance Validates Schiff’s Thesis
Schiff further argued Bitcoin’s failure to keep pace with gold undermines the “digital gold” narrative.
He said markets have had ample time to price in a bullish breakout, and Bitcoin’s continued underperformance increases the risk of a “spectacular crash” rather than a rally to new highs.
Prominent crypto analyst Kevin pushed back, noting capital flows don’t yet support Bitcoin tracking gold higher.
Historically, Bitcoin benefits after gold peaks as capital rotates from safe havens into riskier assets.
Bitcoin Breaks Triangle Support On Massive Outflows
BTC collapsed below $92,000 support, breaking the symmetrical triangle that compressed price since November.
The token rallied 21% from $80,576 in November to $97,843 in early January, then reversed violently and gave back most gains in two weeks.
Bitcoin trades below the 20-day EMA at $92,250, 50-day at $92,236, 100-day at $95,725, and 200-day at $99,243. All moving averages now act as resistance.
The breakdown came with $356.64 million in net outflows—one of the largest single-day exits in recent months.
That level of institutional selling during a 3.19% decline signals conviction that lower prices are coming.
The Levels That Matter
- Critical support: $88,000-90,000 ascending trendline
- Breakdown target: $85,000-86,000 measured move from triangle
- Major breakdown: Loss of $84,000 risks cascade to $80,576 November low or $78,000-80,000
- Resistance levels: $92,236 (50-day average) $95,725 (100-day average) $97,843 (SAR indicator) $99,243 (200-day average)
Image: Shutterstock
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