In 2025, the cryptocurrency landscape continues to evolve, with Bitcoin’s performance drawing scrutiny from various economic analysts. Notably, economist Peter Schiff has recently expressed concerns regarding Bitcoin’s current market position, suggesting that the BTC/USD bubble may be “running out of air.” His comments come on the heels of Bitcoin’s remarkable ascent to $100,000 in December 2024, a milestone that has not been matched by similar growth in other asset classes.
In a post on X, Schiff highlighted the comparative performance of Bitcoin against traditional assets such as gold, the Nasdaq Composite, and the VanEck Gold Miners ETF (GDX) since reaching the $100,000 mark. He pointed out that while Bitcoin has seen a modest increase of only 10% in this timeframe, the Nasdaq has appreciated by 12%, gold has surged by 28.5%, and the GDX ETF has skyrocketed by 80%.
“This bubble is running out of air,” stated Schiff, a long-time critic of Bitcoin.
Despite the narrative surrounding Bitcoin as a safe-haven investment, its behavior in 2025 has mirrored that of a risk-on asset. Factors influencing this volatility include President Donald Trump‘s tariff policies and adjustments made by the Federal Reserve regarding interest rates. Following the so-called “Libration Day,” Bitcoin experienced a significant decline, dropping to $75,000.
Schiff also noted that Bitcoin’s growth has been hindered by specific challenges within the cryptocurrency market, including a notable incident where a whale offloaded 24,000 BTC, valued at over $2.7 billion, earlier this month. In contrast, gold has maintained its reputation as an inflation hedge, appreciating over 27% year-to-date, while Bitcoin’s overall increase stands at 18.81%.
Critics of Schiff argue that he selectively chooses time frames to downplay Bitcoin’s performance while promoting assets like gold. Notably, when comparing annual returns, Bitcoin’s growth exceeds that of many traditional investments, with a remarkable 76% return over the year. Nonetheless, Schiff’s skepticism is not a recent development. He has a history of predicting Bitcoin’s decline, recently suggesting that it could fall back to $75,000 and advising investors to “sell now, buy back lower.”
Although Schiff once claimed that Bitcoin would never reach the $100,000 milestone, he has acknowledged his misjudgment regarding that prediction. His stance reflects the ongoing debate among investors and analysts regarding cryptocurrency’s place in a diversified portfolio.
As 2025 unfolds, it remains to be seen how Bitcoin will navigate the challenges ahead. Analysts and investors alike will be watching closely to determine whether the cryptocurrency can regain its footing or if the warnings from figures like Peter Schiff hold merit.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Benzinga does not provide investment advice. All rights reserved.
