Peter Schiff Warns Against Bitcoin Investment Strategies

TLDR

• Schiff predicts Bitcoin could drop to $50,000 soon.
• MicroStrategy’s stock has decreased by 50% from 2025 highs.
• Gold and silver mining stocks are suggested as alternatives.

Peter Schiff, a well-known economist and Bitcoin critic, issued a warning on January 14, 2026. Schiff cautioned traders against taking profits from gold and silver mining stocks to invest in Bitcoin ETFs and MicroStrategy (MSTR) stock. He described the current Bitcoin rally as a “sucker’s rally.”

Schiff’s Ongoing Critique of Bitcoin Strategies

Schiff, CEO of Euro Pacific Asset Management, is a long-time gold proponent over cryptocurrencies. He has consistently criticized Bitcoin and corporate Bitcoin strategies, particularly targeting MicroStrategy’s CEO, Michael Saylor. In his view, MicroStrategy’s strategy of accumulating Bitcoin is detrimental to shareholder value.

Schiff predicted that Bitcoin’s value would fall to $50,000, with MicroStrategy’s stock potentially halving to $80. This prediction follows MicroStrategy’s recent purchase of 13,627 BTC for $1.25 billion, increasing their total holdings to 687,410 BTC.

Current Market Dynamics and Asset Performance

Affected assets include Bitcoin, facing possible declines as predicted by Schiff. Currently, Bitcoin has reached a two-month high. MicroStrategy’s stock has decreased by 50% from 2025 highs and 57% over six months, despite their Bitcoin holdings exceeding their market capitalization.

Bitcoin ETFs like IBIT have experienced year-to-date gains of 11.66%, while MicroStrategy saw an increase of 18.02% before facing recent pressures. Gold and silver spot/mining stocks have been suggested by Schiff as alternative investments, with the GDX ETF up 12.93% and silver rising 23.90%.

Schiff’s Warnings and Historical Predictions

Schiff’s recent statements were made via social media, where he described the current Bitcoin situation as a “sucker’s rally.” He advised traders to capitalize by purchasing mining stocks instead. His recent tweet emphasized this point.

Schiff has a history of making similar forecasts. In December 2025, he predicted a significant downturn for MicroStrategy and Bitcoin. At the time, MicroStrategy’s stock fell by 47.5%, with Bitcoin dropping below $100,000, aligning with Schiff’s initial warnings.