Peter Schiff Warns Bitcoin May Be Topping Out Before Fed Rate Cut

Highlights:

• Peter Schiff warns Bitcoin could peak as the Fed plans potential interest rate cuts.
• Bitcoin remains about fifteen percent below its 2021 gold-measured price peak.
• Large Bitcoin whale sales indicate potential market moves and smart money shifts.

Bitcoin critic Peter Schiff has raised concerns that Bitcoin could be approaching its peak just as the Federal Reserve plans potential interest rate cuts. Fed Chair Jerome Powell is expected to make a significant monetary policy announcement at the September 17 FOMC meeting, with analysts predicting a minimum 25 basis point reduction. Schiff, however, believes this could be a serious policy mistake. He warns that lowering interest rates while inflation is rising could further increase economic risks rather than improve the situation.

The Fed is about to make a major policy mistake by cutting interest rates into rising inflation. Gold and silver have broken out, with the rally finally confirmed by mining stocks leading the way. Yet instead of breaking out, Bitcoin is topping out. Time to change horses HODLers.

— Peter Schiff (@PeterSchiff) September 14, 2025

Bitcoin Struggles Despite Fed Optimism

Schiff stated that Bitcoin has not fully benefited from the excitement around the Federal Reserve’s expected rate cuts. He noted that while investors are putting money into both risk assets and safe-haven options like gold and silver, Bitcoin seems to be seeing less interest. After last week’s cryptocurrency rally, many investors are now waiting on the sidelines, watching carefully for the next clear market move before taking action.

He also pointed out that Bitcoin is still about 15% below its 2021 peak when measured in gold, which could be a warning sign for those holding the cryptocurrency. Schiff said these factors indicate Bitcoin may be reaching a temporary peak, and investors might need to reconsider their strategies in the current uncertain market. He also said even major stock markets, including the NASDAQ and S&P 500, have reached record levels. 

Crypto Expert Weighs In on Rate Cuts

Crypto expert Ted Pillows said U.S. interest rate cuts usually hurt risk assets in the short term. This is because rate cuts often show that the economy has problems. He said that in the past, three months after the first Fed rate cut, U.S. stock markets often stayed weak or went down. Pillows added that crypto might behave differently. Digital assets often hit their bottom before U.S. stocks. He thinks the same could happen this time, too. So far in September, altcoins have done better than Bitcoin. The altcoin season index is going up. This shows that investors may be looking at other cryptocurrencies for opportunities while BTC struggles to rise.

Rate cuts are generally bearish in the short term.

This is because the Fed usually cuts rates when the economy is in some turmoil.

Just take a look at US stock indices after 3 months of the first rate cut.

S&P 500: Flat

Nasdaq: Barely positive

Russell 1000 and Russell 2000:… pic.twitter.com/en9hNubWML

— Ted (@TedPillows) September 14, 2025

Bitcoin Whales Continue Selling

A long-term Bitcoin holder who sold $4 billion of Bitcoin for Ether last month has started selling again. This happened as Bitcoin went over $116,000 for the first time in three weeks. Two Bitcoin wallets, linked to an address that held Bitcoin for over eight years, sent 1,176 BTC worth more than $136 million to the trading platform Hyperliquid on Sunday. They began selling the coins, according to Lookonchain on X.

Lookonchain said the wallets had paused for about two weeks after selling around 36,000 BTC, valued at $4 billion, for Ether in late August. Whale movements like this can show where “smart money” is going. Traders often see sudden moves from wallets that were inactive for years as a warning.

After a two-week break, the #BitcoinOG who exchanged 35,991 $BTC($4.04B) for 886,371 $ETH($4.07B) is back to selling $BTC!

2 wallets linked to this #BitcoinOG have deposited 1,176 $BTC($136.2M) to Hyperliquid in the past 2 hours and started dumping.https://t.co/LTiJHW049j pic.twitter.com/L0m2bEG1J7

— Lookonchain (@lookonchain) September 14, 2025

Big sales can push Bitcoin prices down. Bitcoin has struggled to move past $116,000. It last reached this level on Friday, for the first time since about three weeks ago on August 23. At the time of writing, it was trading around $115,870, showing a 0.23% rise in the past 24 hours.