The Bitcoin price is trading near $ 116,000, but it’s struggling to break higher ahead of the Federal Reserve’s September 17 FOMC meeting. Despite a 4% gain over the past week, the cryptocurrency has yet to surpass its all-time highs. This hesitation has raised doubts about whether momentum is fading as traders wait for clarity on interest rate cuts.
Peter Schiff Warns Bitcoin Is “Topping Out”
Economist and long-time Bitcoin critic Peter Schiff believes the cryptocurrency is running out of steam.
“Bitcoin is topping out just as the Fed prepares to cut rates,” Schiff said.
He argued that lowering rates while inflation remains high could worsen economic risks.
Schiff also compared Bitcoin’s performance with traditional assets:
- “Bitcoin is still about 15% below its 2021 peak when priced against gold,” he noted.
- “Even equity markets like the S&P 500 and Nasdaq are at record highs, while Bitcoin continues to face resistance.”
According to him, this shows investors are prioritizing gold and silver as safer bets.
Why Fed Rate Cuts Bring Market Uncertainty
The Fed is widely expected to cut rates by at least 25 basis points on September 17. Analysts at Goldman Sachs even predict three consecutive cuts into December. While rate cuts often support markets, some warn they can be bearish in the short term.
Crypto expert Ted Pillows explained:
“Historically, equities have struggled in the months following the first rate cut, as markets interpret the move as a sign of deeper economic weakness.”
This uncertainty, he said, could weigh on Bitcoin in the near term.
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Crypto Market May React Differently
Not everyone agrees with Schiff’s bearish view. Pillows added that crypto may behave differently than stocks:
“Digital assets often bottom before traditional equities and may recover faster once monetary easing takes hold.”
He also pointed out that altcoins are already showing strength, with the Altcoin Season Index climbing higher. This suggests capital may be rotating from Bitcoin into other crypto assets.
Bitcoin at a Crossroads
For now, Bitcoin sits at a critical level. Schiff highlights gold’s strength, while others see crypto’s resilience. Whether Bitcoin breaks resistance or altcoins continue leading, the coming weeks around the Fed’s decision could be decisive for the entire market.
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FAQs
Yes, the Altcoin Season Index is moving higher, showing altcoins are gaining momentum while Bitcoin consolidates.
Analysts are divided. Some believe rate cuts could cause short-term weakness as markets price in economic slowdown, while others argue crypto could recover faster than traditional assets.
Gold and silver are rallying as traditional safe-haven assets, while Bitcoin is consolidating below its all-time highs. Schiff argues this shows investor preference for metals.
Yes, many analysts believe altcoins may continue outperforming as capital rotates away from Bitcoin into Ethereum, Solana, and other projects with strong ecosystems.
