Peter Schiff Sees Bitcoin Setting up for Major Crash as Dollar Collapse Looms

CN
4 hours ago

Economist and gold advocate Peter Schiff shared on social media platform X this week a series of posts outlining his view that rising global yields, surging precious metals, and policy shocks are signaling a weakening U.S. dollar and growing downside risk for bitcoin.

“The yield on the 10-year JGB [Japanese Government Bonds] is now above 2.22% and rising fast. This portends a crash in U.S. Treasuries that will also send mortgage rates soaring,” he stated on Jan. 18, adding:

“At the same time, a coming collapse in the dollar will send consumer prices soaring. Get ready for unprecedented stagflation.”

Schiff linked Japan’s bond market moves to broader stress in global fixed-income markets, arguing that higher long-term yields undermine debt sustainability, even as central banks ease their policy. In other posts shared on X, the economist pointed to sharp gains in precious metals as evidence that investors are positioning for currency debasement and fiscal instability.

“ Gold is already trading at a new record high above $4,670, and silver is up over $3, trading above $93,” he wrote. “Trump’s new tariffs and threats to invade Greenland are uniting the world against the U.S. and threatening to end the U.S. dollar’s hegemony. Our loss will be the world’s gain.” The comments framed geopolitics and trade actions as accelerants to declining confidence in U.S. leadership and the dollar’s role as a reserve currency.

Read more: Peter Schiff: Silver Is Running Out — Buy Now Before There’s Nothing Left

The gold advocate also targeted crypto markets, challenging expectations that bitcoin will track gold higher during periods of monetary stress. “Everyone expects bitcoin to follow gold’s lead and rally to new highs. But the market has given speculators way too much time to buy,” he asserted, predicting:

“What’s far more likely is that bitcoin’s failure to match gold’s gains undermines its narrative as digital gold, resulting in a spectacular crash.”

He further warned: “$4,600 gold and $90 silver confirm a debt crisis is coming.” While Schiff has long promoted precious metals as superior stores of value, proponents of bitcoin counter that network security, institutional custody, and global liquidity continue to expand, even during periods of relative underperformance. These opposing views underscore an ongoing debate over how different assets respond when fiat currencies weaken and financial conditions tighten.

  • Why does Peter Schiff see rising global yields as a threat to the U.S. dollar?
    He argues higher long-term yields undermine debt sustainability and pressure currencies.
  • How are gold and silver prices central to Schiff’s debt crisis warning?
    He says record gold and surging silver signal investor flight from fiat currencies.
  • Why does Schiff believe bitcoin could crash despite higher gold prices?
    He claims bitcoin’s failure to match gold weakens its digital gold narrative.
  • What role do geopolitics and tariffs play in Schiff’s outlook?
    He views trade actions and geopolitical threats as catalysts for declining dollar confidence.

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