Peter Schiff Predicts Gold Surge to $4,000 as Bitcoin Retreats from Record Highs

The long-standing debate between gold and Bitcoin has flared up again as economist and gold advocate Peter Schiff warns that the crypto market may soon face a sharp correction. Schiff, known for his bearish stance on digital assets, claimed that Bitcoin and the broader cryptocurrency sector are “about to be rugged by gold,” predicting a major investor shift toward traditional safe-haven assets.

In a recent post on X, Schiff said Wall Street’s optimism surrounding crypto has reached unsustainable levels. He argued that excessive bullish sentiment could signal an impending pullback. “It’s very likely that Bitcoin and everything crypto are about to be rugged by gold,” he wrote, adding that if gold surpasses $4,000 per ounce, Bitcoin could experience a significant sell-off, dragging the rest of the crypto market with it.

Bitcoin recently slipped below $122,000 after setting a record high of $126,000 earlier in the week, following speculation over a potential U.S. government shutdown. While Binance Coin (BNB) managed gains, major cryptocurrencies like Ethereum, XRP, and Solana fell between 4% and 6%, according to TradingView data. The total crypto market capitalization dropped to around $2.58 trillion, signaling mild but broad profit-taking after weeks of strong gains.

Schiff’s comments reignited debate among investors. Tech entrepreneur Brian Shuster countered his argument, suggesting Bitcoin’s global adoption and institutional involvement could lead to the opposite outcome. Schiff replied that even though gold buyers remain few, their numbers are growing. He believes that if gold continues to rise—currently hovering near $2,700 per ounce—it could attract institutional attention and prompt a flight from riskier crypto assets.

Meanwhile, billionaire investor Paul Tudor Jones maintains a bullish outlook on Bitcoin, predicting an “explosive rally” despite Schiff’s forecast. If gold does approach $4,000, a 50% jump from current levels, the coming months could mark a critical turning point in the gold versus Bitcoin rivalry.