U.S. stock markets lost approximately $650 billion in value this week, with major indexes declining. The Nasdaq fell around 1.4%, the Dow Jones dropped 1.2%, and the S&P 500 slipped roughly 1%, even as stocks remain near record highs.
In stark contrast, Bitcoin surged about 7% over the same period, adding roughly $130 billion to its market capitalization. The total cryptocurrency market gained close to $190 billion, highlighting a significant divergence between traditional equities and digital assets.
Precious metals also experienced sharp volatility. Silver prices briefly fell nearly 8% within minutes after touching a fresh record high, underscoring the turbulent market conditions.
Economist and perennial Bitcoin skeptic Peter Schiff seized on the rally to issue a warning. He labeled Bitcoin's recent price action a "huge sucker's rally" and urged investors to abandon digital assets in favor of physical commodities like gold and silver. "Big moves are coming in precious metals and Bitcoin. Investors need to prepare," Schiff stated, advising them to buy physical metal and mining stocks instead.
Schiff argued that some traders were mistakenly exiting gold and silver mining positions to chase short-term gains in Bitcoin ETFs and MicroStrategy ($MSTR). "That’s a big mistake, and savvy traders should take advantage by buying mining stocks and selling Bitcoin and MSTR," he said. He also took aim at MicroStrategy's strategy, noting its stock trades at a discount to its Bitcoin holdings.
Schiff's long-term outlook remains deeply pessimistic. In a social media post on January 7, he predicted Bitcoin would "kill itself and those who own it" by 2035. This stands in direct opposition to bullish forecasts like that from investment firm VanEck, which has predicted Bitcoin could reach $1.9 million by 2050—a analysis Schiff dismissed as "worthless."
Bitcoin's price action saw it spike to an intraday high of $97,939 on January 14 before retracing some of its gains, demonstrating the volatility Schiff frequently criticizes.
