Peter Schiff Cautions That BTC Is “Reaching Its Peak” Prior to Fed Rate Reductions

Is BTC skeptic Peter Schiff finally poised to be correct for the first time in 16 years regarding Fed rate cuts? If you continuously claim the sky is falling until it actually does, you’ll proclaim, “See, I predicted it!!” just like Schiff.

Schiff took to X (previously Twitter) to suggest that BTC could be “peaking” rather than gearing up for a surge.

The Fed is on the brink of making a significant policy error by reducing interest rates amid increasing inflation. Gold and silver have surged, with crypto mining stocks confirming the rally. Yet instead of breaking out, Bitcoin is peaking. HODLers, it’s time to switch gears.

— Peter Schiff (@PeterSchiff) September 14, 2025

 

Schiff pointed out that Bitcoin is still 15% lower than its 2021 high when measured in gold, indicating, in his opinion, that the asset lacks the momentum compared to traditional safe havens.

Does Peter Schiff Believe Fed Rate Cuts Will Be Irrelevant for BTC?

BTC is experiencing immediate selling pressure as the Federal Reserve’s meeting on September 17 approaches, where a 25 basis point rate reduction is widely anticipated. It remains uncertain if the decision is already factored in, yet traders view this as a potential turning point for risk assets.

Bitcoin is hovering around $115,400 after attempting to breach the $116,000 barrier level level without success.

Peter Schiff Cautions About a Bitcoin Peak: Why Are Gold, Silver, and Stocks Thriving While Bitcoin Falters?

The discrepancy is evident: as the NASDAQ and S&P 500 remain at historic highs and gold sees new breakouts, BTC has struggled to maintain its upward momentum. The Bitcoin/Gold ratio is around 31.53 XAU, down 0.87%, reinforcing Schiff’s argument about its underwhelming performance.

However, not everyone shares this sentiment.

“I agree with you on Fed policy errors. But you’re underestimating Bitcoin… It is likely to break out and outpace gains from gold and silver.” – Response from a crypto crypto holder on X.

Schiff countered, arguing that if this situation were merely “consolidation,” Bitcoin should have already experienced a upward movement.

Is a $116K Breakthrough Possible for Bitcoin?

Futures positioning has shifted to a slightly optimistic outlook, with CoinGlass noting new investments in BTC derivatives ahead of the FOMC meeting. However, spot trading remains negative, dominated by selling pressure.

While Schiff’s warnings make headlines, other analysts maintain a bullish perspective. Kraken’s Dan Held mentioned that the long-term demand factors are favorable for price breakout, while crypto market analyst Ted Pillows drew attention to Bitcoin’s supply-demand imbalance:

Rate reductions are typically downtrend in the short term.

This occurs because the Fed generally cuts rates when the economy is facing some challenges.

Just observe the performance of US stock indices three months post the initial rate cut.

S&P 500: Stable

Nasdaq: Slightly positive

Russell 1000 and Russell 2000:… pic.twitter.com/en9hNubWML

— Ted (@TedPillows) September 14, 2025

99Bitcoins analysts assert that BTC must reclaim the $114K level as strong base level to mount a sustained advance toward $117K and higher. Failing to achieve this may confine Bitcoin within a sideways trading pattern between $110K and $115K until the Fed offers clearer future guidance.

With the rate cut in September nearly certain, Powell’s rhetoric will be the key trigger. A dovish stance could ignite the breakout that Schiff argues won’t materialize.

EXPLORE: Ethereum USD Price Set to Retest $4,700: Is Dark Money Shifting to Ethereum?

Join The 99Bitcoins News Discord Here For The Latest Trading market Updates

The post Peter Schiff Cautions BTC Is “Peaking” Ahead of Fed Rate Cuts originally appeared on 99Bitcoins.