Bitcoin is once again facing criticism as prominent investor Peter Schiff warned of a potential significant drop in the crypto market. His statements come at a time when gold and silver are surging in response to a weakening U.S. dollar, reports CoinGape.

Peter Schiff considers Bitcoin risky

Capital is gradually moving back to traditional stores of value. This development is increasing nervousness among investors who viewed Bitcoin as a hedge against monetary instability.

Schiff has long advocated gold and silver as more reliable stores of value. According to him, the current rise in metal prices reveals Bitcoin’s weaknesses as a crisis hedge. Investors who bought Bitcoin intending to protect their wealth from a potential dollar collapse may face unpleasant surprises.

The first casualty of the gold and silver surge will likely be Bitcoin. Before a U.S. dollar crash, we will likely get a Bitcoin crash. This will surprise Bitcoin HODLers, who bought Bitcoin to protect themselves from a dollar crash. They jumped from the frying pan into the fire.

— Peter Schiff (@PeterSchiff) December 17, 2025

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Silver and gold at all-time highs

Peter Schiff claims that Bitcoin may react to changing market conditions faster than traditional assets. He points to the sharp rise of silver, which strengthened to a new all-time high of 66 dollars. Gold, according to TradingView, also surpassed the 4,330 dollars level and continues seeking new highs. According to Schiff, these movements indicate a return of capital to proven safe havens.

He also warns of deeper problems in the U.S. economy. The rising prices of precious metals, according to him, signal declining confidence in the U.S. dollar and government bonds. Such a trend could lead to higher consumer prices or increased unemployment, which might weaken Bitcoin instead of serving as protection.

A Path Toward $10,000 Bitcoin –
“We buy Bitcoin with money we can’t afford to lose.” Michael Saylor, at the Economic Club of Miami event last evening.
I admire and respect Mr. Saylor, and it was his arrival in 2020 — when Bitcoin traded near $10,000 — that helped fuel the 10x… pic.twitter.com/0CDBxCZYYc

— Mike McGlone (@mikemcglone11) December 16, 2025

Schiff is not the only skeptical voice. Bloomberg Intelligence analyst Mike McGlone suggested a possible return of Bitcoin to significantly lower price levels if demand declines. Another risk is potential capital withdrawals from crypto funds totaling 10–20 billion dollars, which could increase market pressure toward the end of the year.

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