Peter Schiff Claims Wall Street Has Killed Bitcoin’s Value Proposition

TLDR

Table of Contents

Peter Schiff believes Bitcoin’s value was hurt by Wall Street’s involvement.
Schiff claims Bitcoin’s institutionalization made it a “crowded trade.”
Bitcoin has failed to match the performance of gold and silver in 2026.
Schiff argues that Bitcoin holders missed out on better gains with other assets.

Bitcoin has long been a controversial asset, with many voices supporting or criticizing its future. Recently, Peter Schiff, a well-known gold advocate and Bitcoin critic, expressed his concerns about Bitcoin’s current trajectory.

Bitcoin was the best performing asset during a time period when hardly anyone owned it. But ever since Wall Street embraced it and most people bought it, it's been one of the worst performing assets.
— Peter Schiff (@PeterSchiff) January 23, 2026

According to Schiff, Bitcoin’s rise to mainstream status, particularly after being institutionalized, has stripped it of the qualities that made it a successful investment in the first place. He claims that Wall Street’s involvement in Bitcoin has turned it from a niche, contrarian asset into a “crowded trade” that no longer offers the same potential for outsized returns.

Schiff’s View on Bitcoin’s Institutionalization

Peter Schiff has long been vocal about his belief that Bitcoin lacks inherent value, claiming that it is not a reliable store of wealth. Recently, he argued that Bitcoin’s institutionalization, through the introduction of exchange-traded funds (ETFs) and its adoption by traditional financial players, has led to a shift in its dynamics.

Previously, Schiff notes, Bitcoin was seen as a “contrarian” bet that offered significant upside to those willing to take risks. However, with larger financial institutions now participating, the cryptocurrency has become mainstream. For Schiff, this shift has caused Bitcoin to lose its unique appeal, turning it into just another asset in a crowded market.

Schiff has repeatedly criticized Bitcoin’s ability to maintain its value, and he believes that the influx of institutional investors has made the asset more volatile, less attractive, and less capable of delivering the high returns that early Bitcoin holders enjoyed. He sees the growing participation of large financial entities as a key factor that has transformed Bitcoin into something less innovative and more predictable.

The Performance of Bitcoin vs. Precious Metals

Bitcoin’s recent performance has been under scrutiny, especially when compared to other assets like gold and silver. In early 2026, Bitcoin was trading near $92,000, showing a 116% increase since January 2024. Despite this, Schiff pointed out that precious metals like gold and silver have outperformed Bitcoin in recent months. Gold and silver prices have surged, with silver recently breaking its all-time high, while Bitcoin’s price has been relatively stagnant.

Silver and gold are at new record highs, precious metals mining stocks are exploding, and the dollar is tanking. Meanwhile, Bitcoin is down again. Bitcoin not crashing yet isn’t the real problem for HODLers. It’s all the gains they’re missing out on by continuing to hold Bitcoin.
— Peter Schiff (@PeterSchiff) January 22, 2026

“Silver is above $98, trading at $98.35. Amazing that it’s less than $2 away from $100. It’s up over 35% so far this year,” Schiff noted. Similarly, gold has reached new all-time highs, inching closer to the $5,000 mark. Schiff emphasized that, compared to these gains, Bitcoin has underperformed, particularly when priced in gold. He pointed out that since Bitcoin’s peak in 2021, its value has fallen by over 50% when measured against gold.

Bitcoin’s Recent Price Movement

While Schiff acknowledges that Bitcoin has not faced a dramatic collapse, he remains critical of its overall price performance. He emphasized that Bitcoin has not delivered the kind of gains that many long-term holders expected. Although Bitcoin has continued to hover around $90,000, it has struggled to maintain momentum when compared to other assets like gold and silver.

Schiff’s criticisms focus on the idea that Bitcoin holders may have missed out on better opportunities by holding onto their BTC while other assets have surged. However, Bitcoin supporters continue to argue that the cryptocurrency’s long-term potential remains strong, citing factors like its fixed supply and history of sharp recoveries as reasons for patience. Even though short-term performance may fluctuate, Bitcoin’s supporters believe it is still a valuable asset in the long run.

Despite Schiff’s bearish stance, many in the crypto community continue to believe in Bitcoin’s future, viewing his claims as just another round of skepticism. As the debate around Bitcoin’s future intensifies, it is clear that the tension between Bitcoin supporters and critics like Peter Schiff will continue.