Bitcoin critic Peter Schiff said the leading cryptocurrency is showing signs of topping out ahead of the anticipated Fed rate cut at the September 17 FOMC meeting. The broader crypto market also reflected caution over the weekend, with BTC facing selling pressure despite a 4% weekly gain. As of now, Bitcoin price faces a strong resistance at the $116,000 level.
Peter Schiff Slams Bitcoin Performance Before Fed Rate Cut
Fed chair Jerome Powell is likely to make a major monetary policy pivot at the September 17 FOMC meeting, as analysts expect a minimum of 25 bps interest rate cut. However, Bitcoin critic Peter Schiff believes that this could be a major policy misstep. Schiff believes that proceeding with rate cuts during rising inflation will only worsen economic risks.
The economist further stressed that while traditional safe-haven assets like Gold and Silver are showing strength, in this economic uncertainty, Bitcoin is showing signs of topping out. He also argued that even equity markets, like the NASDAQ and S&P 500, have touched their all-time highs.
On the other hand, BTC price has faced selling pressure and struggled to break past its all-time highs. ” Given that Bitcoin is still 15% below its 2021 peak, priced in gold should be a concern,” noted Schiff.
Peter Schiff added that Bitcoin has failed to capitalize on the optimism surrounding the Fed rate cut. He also mentioned that while investors are buying into both risk assets and safe havens, they are selling Bitcoin. Following last week’s crypto market rally, investors are now waiting on the sidelines for the next directional move.
Expert Calls It Typical Crypto Market Behaviour
Crypto market expert Ted Pillows believes that U.S. interest rate cuts are typically bearish for risk assets in the short term, as they often signal underlying economic turmoil. Citing historical data, Pillows noted that three months after the first Fed rate cut, major U.S. stock indices have shown muted or negative performance.
However, he added that the outlook for crypto markets may differ. Pillows emphasized that digital assets tend to bottom before U.S. equities. The analyst believes that a similar trend could play out this time as well. So far in September, altcoins have shown greater strength than Bitcoin, with the altcoin season index moving higher.
Goldman Sachs expects the Federal Reserve to deliver three consecutive 25 basis point cuts in September, October, and December. The bank projects two additional cuts in 2026, lowering the federal funds rate to a target range of 3%–3.25%.
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.
He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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