Peter Schiff claims BTC could not live up to the debasement trade, and is not a viable alternative of the US dollar

Peter Schiff came out with another gloom and doom prediction on Bitcoin, stating BTC failed to become an alternative to fiat. He spoke out in support of gold again, as BTC did not live up to an asset for the ‘debasement trade’.

Financial analyst Peter Schiff claimed BTC was not an adequate asset for the recently emerging ‘debasement trade’. He claimed BTC failed to live up to the standard as digital gold due to its inherent volatility. 

It's not just a de-dollarization trade but a de-bitcoinization trade. Bitcoin has failed the test as a viable alternative to the U.S. dollar or digital gold. HODLers are in denial and their refusal to accept reality will cost them dearly.

— Peter Schiff (@PeterSchiff) October 16, 2025

Previously, many analysts bundled BTC and gold together into the ‘debasement trade’, with some expecting BTC to catch up to gold’s recent records. BTC has gained 60.8% in the year to date, practically level with gold’s 60.6% gains. 

Silver, which had a breakout rally, is up over 67% net in the year to date, surpassing BTC as the number one growth asset. As of October 16, assets in the debasement trade baskets are outperforming other sectors by a wide margin, despite the record stock valuations. 

Schiff spoke out as BTC had another flash crash, sliding under the $108,000 range. BTC also increased its volatility to 1.8% in October, after a period of more subdued price moves. BTC moved down to $108,618 after a series of downward moves in the past day.

Schiff has been known for his bearish stance on BTC, claiming the asset may collapse at any time. However, BTC still has potentially unlimited upside, in addition to a year of institutional support.

BTC still offsets US dollar weakness

In 2025, BTC managed to offset much of the weakness in the US dollar, as the currency fell against the euro and other fiat. The US dollar has been attempting a small recovery, but has shown weakness throughout 2025, while BTC set a series of price records. 

The BTC climb has offset multiple years of volatility in the US dollar index, even during the recent bear market. BTC has also been used as a store of value for countries with hyperinflation and much more volatile currencies. 

As for the bottom falling out of BTC, the coin still has a sufficient number of holders and has matured beyond panic-selling. 

BTC still goes through rapid liquidation cycles

In the short term, some of the BTC flaws lie with the rapid unraveling of derivative trading. 

BTC open interest declined again to $33.32B, following another round of rapid liquidations. Within a four-hour window, BTC erased another $155M from long liquidations. 

The BTC market may also bounce even after significant de-leveraging, though it may take months for liquidity to rebuild to previous levels. Despite this, BTC is still seen as a viable asset class for unlimited growth. Additionally, BTC has shown a historical response to M2 liquidity growth, catching up to the money supply within a few months.

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