Could Bitcoin Mirror Silver’s Rally… in Reverse? CEO Issues Caution

Peter Schiff has raised concerns that Bitcoin may face a downturn similar to the sharp rise seen in silver. Analysts and traders are debating whether this surge in silver is indicative of a fundamental change favoring tangible assets or merely a temporary spike that could quickly unwind.

Key Takeaways

Silver's recent surge, with an 18% gain last week, highlights a significant demand driven by a supply deficit and new classifications from the government.
Peter Schiff warns that Bitcoin could experience a similar but opposite outcome.
Tokenized commodities are seeing increased valuation, but they are still small compared to traditional markets.
Bitcoin has stalled around the $87,000 mark, raising questions about its future trajectory compared to silver.

Bitcoin

Silver’s Remarkable Rise

Trading data reveals that silver experienced a dramatic increase of over 10% within a single trading day, advancing from approximately $78 to $79 in merely ninety minutes. Last week, spot silver price surged by 18%, closing at a new high of $79.31, attributed to low trading volumes following the holiday season and its new classification as a critical mineral in the U.S.

This rally has been fueled by a supply deficit rather than geopolitical movements or anticipation of U.S. interest rate cuts. A chart from TradingView illustrates a near-vertical price breakout, and the monthly Relative Strength Index (RSI) has hit its highest level in 45 years, signaling extreme momentum.

"What is happening with silver may soon be happening with Bitcoin, only in reverse. But since markets tend to melt down faster than they melt up, the time frame for the move should be condensed."
— Peter Schiff (@PeterSchiff) December 27, 2025

Tokenized Commodities and Market Insights

The emergence of tokenized versions of metal assets has also gained traction, with reports indicating that these crypto-linked commodity tokens are nearing a total valuation of $4 billion, showcasing escalating interest from investors. Data from CompaniesMarketCap highlights that silver's market capitalization is closing in on that of NVIDIA, indicating significant institutional demand for exposure to metals.

However, it’s important to note that while the move toward tokenized assets is noticeable, it remains minor compared to traditional spot markets and large exchange-traded funds (ETFs).

BTCUSD currently trading at $87,578. Chart: TradingView

Recently, Bitcoin has traded around $87,000, showing little movement during this period according to snapshots from CoinMarketCap. Some trading charts suggest that Bitcoin has been losing value relative to silver since 2017. A valuation model comparing silver to Bitcoin estimates Bitcoin’s potential trend value to be around $394,000, prompting discussions among traders about future market movements.

Furthermore, significant inflows into the BlackRock Bitcoin ETF in 2025 suggest consistent institutional interest in cryptocurrency, even as other indicators hint that Bitcoin's momentum may stall without additional catalysts.

The recent impressive gains in spot silver have led to divided opinions among technicians and strategists. Some argue that this rally reflects an authentic mismatch between supply and demand, particularly after the U.S. designated silver as a critical mineral, which has incentivized long-term investment. Others point out that thin trading volumes following the holidays may have exaggerated these price changes.

Some analysts have observed a "closing price reversal top" pattern at these record highs, suggesting that a correction might be imminent following such rapid growth.

Market experts warn that prices can quickly reverse when liquidity is limited, with Peter Schiff emphasizing that price declines may accelerate under pressure, especially when crowded positions are unwound swiftly. However, the ongoing long-term inflows into Bitcoin ETFs and related institutional products should not be overlooked, as they can provide support for higher prices in the future.

Moving forward, traders will be closely monitoring trading volumes to see if silver maintains its current levels and if Bitcoin can regain its momentum amidst silver's strength.

Featured image from Unsplash, chart from TradingView