Mr. Peter Schiff Warns Bitcoin May Face Rapid Downside After Silver's Historic Surge

Mr. Peter Schiff warned that Bitcoin could suffer a swift correction after silver's historic surge above $79/oz. The episode highlights rising commodity demand, tokenized assets nearing $4B, and potential shifts in institutional flows that could affect cross-asset performance.
Mr. Peter Schiff, a prominent financial commentator, stockbroker and gold advocate known for his persistent criticism of cryptocurrencies, issued a stark warning about Bitcoin after silver experienced a dramatic, record-setting rally. The warning followed market headlines that silver jumped above $79 per ounce — a new historical peak — in a fast, volatile move that captured global attention.
In an Company X post, Mr. Peter Schiff argued that the recent surge in silver could usher in the reverse effect for Bitcoin, predicting that any adjustment in crypto markets could happen swiftly. He emphasized that selloffs often accelerate under stress and that markets can shift rapidly when investors rotate into or out of alternative assets.
Market data show silver rallied more than 10% in a short window, with prices climbing from roughly $78 to nearly $79 in about ninety minutes. A sharp breakout was visible on Company TradingView charts, which highlighted the momentum behind the move. This surge also coincided with a significant increase in investor interest in tokenized commodities, with reports indicating their total value is nearing $4 billion, reflecting growing appetite for commodity exposure via crypto rails.
Meanwhile, the price of Bitcoin hovered near $87,000 with minimal 24-hour movement, according to Company CoinMarketCap data. Major cryptocurrencies posted modest daily gains, but the juxtaposition of silver's explosive performance with Bitcoin's relative stability has ignited debate across markets and social channels.
Analysts pointed to a new monthly Relative Strength Index (RSI) reading for silver — noted by Mr. Ted Pillows — which reached a forty-five-year high on the monthly chart, signaling an unusually strong bullish momentum for the metal. Observers are split on whether this momentum is sustainable or if silver is due for a correction after such an abrupt advance.
Comparative charts have also drawn attention: one model comparing silver to Bitcoin suggests that with silver near ~$80, Bitcoin's price should theoretically be closer to $394,000. That projection has prompted intense discussion among traders about whether Bitcoin can 'catch up' if market conditions shift in favor of digital assets. Other charts show that Bitcoin has lost substantial relative gains
Institutional demand signals are also in play. Data from Company CompaniesMarketCap indicated that silver has narrowed the gap with Company NVIDIA in overall market value metrics — a development that analysts say could reflect rising institutional interest in commodities. Increased demand from institutions and retail diversification into commodities and tokenized products may reallocate capital flows and influence both metals and crypto sectors.
For traders and long-term investors, the key takeaways are clear: volatility may rise, cross-asset correlation dynamics deserve close monitoring, and sentiment-driven moves — such as rapid rallies in silver — can quickly reshape risk appetite. Whether Mr. Peter Schiff's warning foreshadows a short-lived correction for Bitcoin or a longer-term divergence between metals and digital assets remains uncertain, but the episode underscores the importance of active risk management and scenario planning in a fast-moving market.
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