Economist Peter Schiff has never been shy about his disdain for Bitcoin (BTC), and he's back with a fresh warning that might make crypto enthusiasts uncomfortable. On Friday, he declared the apex cryptocurrency is now behaving as a "mirror image" of silver, and if that relationship holds, things could get ugly.
When Silver Zigs, Bitcoin Zags
The numbers tell a striking story. In November alone, silver climbed 16.5% while Bitcoin tumbled 17.5%. Zoom out to the full year, and the contrast gets even sharper: silver has surged 95% year-to-date, whereas Bitcoin has slipped roughly 4%.
Posting on X, Schiff connected the dots: "Since silver will likely go much higher, that means its mirror image will likely crash."
At the time of writing, Bitcoin was trading at $90,535.28, down 0.9% in 24 hours, with a market cap of $1.8 trillion and a 24-hour trading volume of $57.64 billion, up 16.74%.
The precious metals trade has been remarkably strong. The iShares Silver Trust (SLV) has soared 90.16% year-to-date, even outpacing the SPDR Gold Trust (GLD), which has risen 58.05% over the same period.
The Treasury Asset Problem
Schiff's concerns extend beyond simple price comparisons. Earlier this month, he took aim at companies like Strategy (MSTR) that have adopted Bitcoin as a treasury asset, calling the strategy structurally unsound.
Here's the problem as he sees it: these firms stay afloat by issuing debt or new shares to acquire more Bitcoin. The moment the stock trades below the value of its Bitcoin holdings, the entire "yield loop" breaks, Schiff explained. That could trigger forced BTC sales and worsen market declines, creating a vicious cycle.
Losing Its Core Identity
The economist has also argued that Bitcoin is struggling to fulfill its original promises as both a payment method and a store of value. Stablecoins are increasingly preferred for everyday transactions, and tokenized gold is emerging as a more reliable asset for preservation.
"The race to get out of Bitcoin is on. Don't be last," he stated, adding that investor confidence is collapsing.
Whether Schiff's mirror image theory holds up remains to be seen, but the divergence between traditional safe havens and crypto is becoming harder to ignore. For now, precious metals are having their moment while Bitcoin navigates choppier waters.