Peter Schiff, the outspoken gold advocate, warned that Bitcoin may be “topping out” as traders await a Federal Reserve decision this week.
The comment has drawn attention because it comes just before a key Federal Reserve meeting that many expect to affect risk assets.
Based on market reports, BTC logged about a 4% rise over the past week but ran into strong resistance at roughly $116,000, which traders are watching closely. That hesitation is part of why some voices, like Schiff’s, are warning a top could be forming.
The Fed is about to make a major policy mistake by cutting interest rates into rising inflation. Gold and silver have broken out, with the rally finally confirmed by mining stocks leading the way. Yet instead of breaking out, Bitcoin is topping out. Time to change horses HODLers.
Reports have linked Schiff’s warning to the timing of that move, arguing that a policy shift from the Fed could alter flows into crypto and other risk assets in ways the market does not yet fully price.
Traders are parsing both macro signals and on-chain data as they set up for what may be a volatile session.
Schiff contrasted Bitcoin’s flatness with what he called strong moves in gold and silver. In his post he suggested that mining stocks have confirmed the metals’ rally, and then added that Bitcoin, by comparison, looks tired.
That blunt comparison is part of his wider message that some investors might want to re-balance into metals if the current pattern persists.
Not everyone agrees with the gloomier take. Some commentators point out Bitcoin’s recent weekly gains and highlight large buyers and corporate treasuries continuing to add BTC.
Volume on rallies, whether Bitcoin can close decisively above $116,000, and the Fed’s announcement on September 17 are the near-term triggers to watch.
If BTC fails to hold support after the Fed news, some technical traders may step aside or reduce risk exposure. Conversely, a clean break above resistance would weaken the topping argument and could prompt renewed buying.
Featured image from Meta, chart from TradingView
