Economist and Bitcoin critic Peter Schiff issued a stark warning on January 14, 2026, advising traders against diverting profits from gold and silver mining stocks into Bitcoin ETFs and MicroStrategy (MSTR) stock. Schiff characterized the current surge in Bitcoin's value as a "sucker's rally."
Schiff's Persistent Criticism of Bitcoin Strategies
As CEO of Euro Pacific Asset Management, Schiff has long championed gold over cryptocurrencies and has consistently voiced his disapproval of Bitcoin and corporate strategies involving the digital asset. He specifically targets MicroStrategy's CEO, Michael Saylor, arguing that MicroStrategy's approach of accumulating Bitcoin is detrimental to shareholder value.
Schiff has forecast a potential decline in Bitcoin's value to $50,000. He also predicts that MicroStrategy's stock could see a significant drop, potentially halving to $80 per share. These predictions come in the wake of MicroStrategy's recent acquisition of 13,627 BTC for $1.25 billion, which has expanded their total Bitcoin holdings to 687,410 BTC.
Current Market Dynamics and Asset Performance
The assets under scrutiny include Bitcoin, which Schiff suggests is poised for a decline. Despite this warning, Bitcoin has recently reached a two-month high. MicroStrategy's stock has experienced a 50% decrease from its 2025 highs and a 57% drop over the past six months. This decline has occurred even as the company's Bitcoin holdings surpass its market capitalization.
Bitcoin ETFs, such as IBIT, have recorded year-to-date gains of 11.66%, while MicroStrategy's stock saw an increase of 18.02% before encountering recent market pressures. Schiff has put forth gold and silver spot/mining stocks as alternative investment options. The GDX ETF, representing gold miners, is up 12.93%, and silver prices have risen by 23.90%.
Schiff's Warnings and Historical Predictions
Schiff articulated his latest concerns through social media, labeling the current Bitcoin market behavior as a "sucker's rally." He encouraged traders to seize the opportunity by investing in mining stocks instead. His recent tweet reiterated this viewpoint.
This is not the first time Schiff has made such forecasts. In December 2025, he predicted a substantial downturn for both MicroStrategy and Bitcoin. At that time, MicroStrategy's stock had fallen by 47.5%, and Bitcoin had dropped below $100,000, which aligned with Schiff's earlier warnings.