Bitcoin News

Peter Schiff Says Bitcoin Topping Out Before Fed Rate Cut

Peter Schiff cautioned that Bitcoin may be nearing a top ahead of the September 17 FOMC meeting, warning of mounting economic risks.
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Peter Schiff Says Bitcoin Topping Out Before Fed Rate Cut

Highlights

  • Bitcoin struggles while Gold and Silver shine ahead of the Fed rate cuts this week.
  • Peter Schiff noted that BTC remains 15% down against Gold in comparison to its 2021 peak.
  • Analyst Ted Pillows noted that rate cuts are usually bearish for risk assets in the short term.

Bitcoin critic Peter Schiff said the leading cryptocurrency is showing signs of topping out ahead of the anticipated Fed rate cut at the September 17 FOMC meeting. The broader crypto market also reflected caution over the weekend, with BTC facing selling pressure despite a 4% weekly gain. As of now, Bitcoin price faces a strong resistance at the $116,000 level.

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Peter Schiff Slams Bitcoin Performance Before Fed Rate Cut

Fed chair Jerome Powell is likely to make a major monetary policy pivot at the September 17 FOMC meeting,  as analysts expect a minimum of 25 bps interest rate cut. However, Bitcoin critic Peter Schiff believes that this could be a major policy misstep. Schiff believes that proceeding with rate cuts during rising inflation will only worsen economic risks.

The economist further stressed that while traditional safe-haven assets like Gold and Silver are showing strength, in this economic uncertainty, Bitcoin is showing signs of topping out. He also argued that even equity markets, like the NASDAQ and S&P 500, have touched their all-time highs.

On the other hand, BTC price has faced selling pressure and struggled to break past its all-time highs. ” Given that Bitcoin is still 15% below its 2021 peak, priced in gold should be a concern,” noted Schiff.

Peter Schiff added that Bitcoin has failed to capitalize on the optimism surrounding the Fed rate cut. He also mentioned that while investors are buying into both risk assets and safe havens, they are selling Bitcoin. Following last week’s crypto market rally, investors are now waiting on the sidelines for the next directional move.

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Expert Calls It Typical Crypto Market Behaviour

Crypto market expert Ted Pillows believes that U.S. interest rate cuts are typically bearish for risk assets in the short term, as they often signal underlying economic turmoil. Citing historical data, Pillows noted that three months after the first Fed rate cut, major U.S. stock indices have shown muted or negative performance.

Source: Ted Pillows

However, he added that the outlook for crypto markets may differ. Pillows emphasized that digital assets tend to bottom before U.S. equities. The analyst believes that a similar trend could play out this time as well. So far in September, altcoins have shown greater strength than Bitcoin, with the altcoin season index moving higher.

Goldman Sachs expects the Federal Reserve to deliver three consecutive 25 basis point cuts in September, October, and December. The bank projects two additional cuts in 2026, lowering the federal funds rate to a target range of 3%–3.25%.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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