As 2026 unfolds, Peter Schiff has a stark warning for Bitcoin enthusiasts: the optimism surrounding crypto is dwindling, and the signs of a market correction are becoming evident. Schiff, a well-known critic of Bitcoin, argues that the cryptocurrency’s once-bullish trajectory is now facing headwinds, having struggled throughout 2025 despite numerous pro-crypto narratives.
In a “Year-End Special” episode released on January 1, Schiff detailed his outlook for Bitcoin and others. He pointed out that while BTC was expected to soar amidst calls for increased adoption—including a prominent Bitcoin advocate in the presidential seat, robust corporate investments, and a surge in ETF offerings—it ultimately fell short. He characterized Bitcoin’s disappointing performance against rising equities and commodities as a diagnostic of deeper issues.
While 2025 saw the Dow climbing by 13%, the S&P 500 up by 16.4%, and the Nasdaq enjoying a substantial 20.4% increase, Bitcoin diverged from these trends. Schiff noted that Bitcoin recorded a significant drop of over 30% during the year, a stark contrast to gold’s impressive 64% rise and more than a 100% increase for silver. He lamented, “Bitcoin was one of the only things that was down on the year,” despite everything seemingly aligning for its success.
Schiff used Bitcoin ETFs as a touchstone to illustrate his point, revealing that these financial products experienced a decline of over 7.5% in 2025. “If something doesn’t go up when everybody thinks it’s going to go up, that’s a pretty good indication that it’s going to go down,” he stated, suggesting that all positive sentiments were already priced into Bitcoin and that its future movements might be expected to lean bearish.
Turning to Strategy, a highly visible leveraged Bitcoin proxy, Schiff underscored its faltering fortunes. He described Strategy as the “poster boy” for Bitcoin leverage, noting a significant dip of 47.5% over the year. The 52-week low depicted a larger trend of declining sentiment, revealing that the market is beginning to factor in potential negative developments for Bitcoin. With Strategy’s average Bitcoin cost basis around $75,000, Schiff posited that current prices leave minimal room for growth, questioning the prevailing narrative of Bitcoin as a surefire investment.
Schiff projected that if purchases from funds like Strategy slow or reverse into negative territory—an alarming possibility given the present climate—the demand for Bitcoin could dry up precisely when it is needed most. “The ETFs are selling now,” he warned, making clear that the once buoyant investor enthusiasm is fading swift.
While Schiff refrained from naming an explicit price target for Bitcoin in 2026, he did reference a troubling minimum estimate of around $50,000, asserting that Bitcoin could take a significant hit as broader market structures weaken. His predictions culminate in a sobering directive for crypto holders: “Get rid of your Bitcoin above $87,000,” he cautioned, indicating that he expects capital to rotate back towards traditional safe havens like gold as the allure of cryptocurrencies diminishes.
The backdrop to Schiff’s analysis reveals a complex macroeconomic landscape rife with challenges such as rising inflation and stagnant growth. He has articulated a concerning view of the economy moving into 2026, where he predicts a dangerous combination of high inflation and low growth—termed a “toxic” economic environment. His expectations of a languid economy, compounded with ongoing consumer price pressures, underscore his skepticism towards Bitcoin’s staying power amidst such turbulence.
At press time, Bitcoin was trading at approximately $89,517, signaling a tense atmosphere as the market grapples with Schiff’s grim forecasts.
