‘Rugged’ By Gold? Economist Thinks Bitcoin’s Glory Days May Be Numbered

Bitcoin pulled back from fresh highs this week, while gold pushed higher and grabbed attention. According to social posts by economist Peter Schiff, a move into precious metals could force crypto prices lower.

Bitcoin briefly slipped below $122,000 after hitting an intraday peak near $126,000 earlier, and the total crypto market cap eased to about $4.13 trillion. Based on figures, most large coins fell; Ethereum, XRP and Solana dropped between 5% and 6%, while BNB was among the few gainers.

Schiff Issues Stark Warning

Schiff wrote on X that “Bitcoin and everything crypto are about to be rugged by gold,” and he forecasted gold reaching $4,000 per ounce if the trend continues.

He argued Wall Street’s optimism on crypto has become hard to justify and suggested that a sharp move in bullion could pull funds away from digital assets.

Gold is trading near $2,700 per ounce at present, putting Schiff’s $4,000 target roughly 50% above current levels. If that happened, large investors would likely take notice, he said.

Wall Street is so bullish on crypto that it’s hard to imagine it going much higher from here. Instead, it’s very likely that Bitcoin and everything crypto are about to be rugged by gold. As gold tops $4k, it’s likely that Bitcoin will sell off, taking the rest of crypto with it.

— Peter Schiff (@PeterSchiff) October 7, 2025

Deutsche Bank Sees A Role For Both Assets

Meanwhile, reports have disclosed a Deutsche Bank research note that paints a different picture. The bank said both bitcoin and gold could be held on central bank balance sheets by 2030 as policymakers respond to a weaker dollar and rising geopolitical risks.

According to the report, bitcoin reached about $123,500 in August and roughly $125,000 in October during a record run for the token in 2025.

Deutsche Bank suggested that a strategic allocation to bitcoin might become part of a modern reserve play, alongside traditional bullion.

Some market veterans see the recent dips as a pause, not a top. Paul Tudor Jones, for example, has voiced bullish views and expects further upside for bitcoin.

Others, like Schiff, view the setup as the start of a reallocation toward safer stores of value. Traders also noted that the market was pricing in a possible three-week US government shutdown, a factor that briefly boosted volatility across risky assets.

Trading data showed the total crypto market off slightly after several weeks of gains. Small profit-taking appears to explain the pullback more than any single event.

Based on reports and public comments, two clear scenarios exist: a rotation into gold that drags crypto lower, or a continued appetite for bitcoin that keeps both assets bid.

Some institutional players prefer holding both. Others will watch inflation, rate expectations and dollar strength for clues. For now, markets are split and investors are watching price action closely.

Featured image from Vaulted, chart from TradingView