Cryptocurrency Risks Amid Silver's Record-Breaking Rally: Peter Schiff Speaks Out Again

As silver prices break through $79/oz to hit a record high, well-known gold advocate Peter Schiff has raised new doubts about the outlook for Bitcoin. The long-time cryptocurrency critic stated on X that, amid increasing market pressure, BTC may face a rapid correction, and such a pullback often outpaces its upward gains.

The Dramatic Jump in Silver and Market Dynamics Shift

Last week, silver surged from $78 to $79 in just 90 minutes, an increase of over 10%, setting a new record. This rapid breakout drew widespread market attention and rekindled investor interest in re-evaluating traditional precious metals. In contrast, Bitcoin is currently hovering around $90,570, with a 24-hour gain of only 0.45%, indicating relative calm.

The rise of tokenized commodity assets further signals this shift. These digital precious metal products supported by blockchain technology have approached a total market cap of $4 billion, reflecting growing investor interest in digital forms of physical assets. Data from CompaniesMarketCap shows that silver’s market value is approaching that of tech giant Nvidia, highlighting significant institutional demand.

The Market Story Behind Technical Signals

Silver’s monthly Relative Strength Index (RSI) has reached levels not seen in 45 years, a reading that typically raises concerns about overbought conditions. However, in the current cycle, this indicator instead points to sustained bullish pressure rather than a reversal signal. Market observers like Ted Pillows emphasize the significance of this long-term bottom breakout through their chart analysis.

In contrast, Bitcoin’s performance on multi-year charts has been disappointing. If we project an equivalent model based on silver approaching $80, the theoretical price of BTC should be around $394,000—far above its current actual price—suggesting a significant decline in Bitcoin’s relative profitability compared to precious metals. This long-term performance gap serves as strong evidence for traditional asset advocates like peterschiff.

Attitude Adjustment Among Market Participants

The recent strong rally in silver has sparked broader discussions within the investment community. Institutional capital flows are increasingly favoring traditional commodities, especially assets with tangible value. According to real-time data from CoinMarketCap, mainstream cryptocurrencies show limited daily trading activity, further highlighting the trend of capital shifting from risk assets to stable assets.

peterschiff has long maintained that cryptocurrencies lack intrinsic value and that their volatility makes them vulnerable investments during economic uncertainty. He sees the historic breakout in silver as confirmation of this stance—when markets face pressure, tangible assets tend to perform more resiliently.

Warnings Investors Need

While Bitcoin remains relatively stable in price, the speed at which crypto assets decline often exceeds their rate of ascent—this is a key risk emphasized by peterschiff. Against the backdrop of silver’s continued rise and the expanding market cap of tokenized commodities, diversified portfolio allocation becomes especially important.

Real-time charts on TradingView clearly show the dramatic 90-minute jump in silver, potentially indicating a larger shift in capital flows. For traders monitoring market movements, paying close attention to RSI peaks, relative performance, and the growth trajectory of tokenized assets will be crucial for making more informed allocation decisions. In this volatile financial environment, a cautious approach can help investors avoid potential risks.