Peter Schiff Warns Bitcoin Holders of Quiet Christmas Rally Trap

TLDR

Table of Contents

Peter Schiff suggests Bitcoin’s quiet rally is a short-lived opportunity for holders to exit.
Schiff believes Bitcoin is failing as a hedge against inflation, unlike precious metals.
Bitcoin’s recent rally peaked at $89,194, but it remains 29% below its all-time high.
The largest-ever Bitcoin options expiry could influence volatility in the coming months.

Peter Schiff is cautioning Bitcoin investors about the cryptocurrency’s recent rally, describing it as a potential trap. Despite a brief surge in price over Christmas, Schiff warns that this may be a fleeting opportunity for holders to exit before Bitcoin faces further declines. With Bitcoin still down nearly 30% from its all-time high, Schiff suggests that investors may be better off seeking safer assets like gold or silver.

Schiff’s Warning on Bitcoin’s Quiet Christmas Rally

Peter Schiff, the prominent economist known for his skeptical stance on Bitcoin, has raised concerns about the cryptocurrency’s recent rally. Speaking to Bitcoin holders, Schiff warned that the ongoing surge in Bitcoin’s price during the Christmas period could be a temporary opportunity.

He suggested that this could be the last chance for investors to exit their positions before the price drops further. According to Schiff, the brief rally is essentially a “gift” of liquidity, allowing Bitcoin investors to exit at a slightly better price.

Merry Christmas, HODLers. Santa gave you guys a Christmas gift after all—a Bitcoin rally to sell into.
— Peter Schiff (@PeterSchiff) December 26, 2025

Bitcoin, which reached an intraday high of $89,194 on Christmas Day, has faced significant declines from its peak. Despite the recent price increase, the cryptocurrency remains nearly 30% down from its all-time high. Schiff’s comments indicate his belief that the rally might not be sustained in the long term.

The Decoupling of Bitcoin from Traditional Safe-Havens

Schiff has long been an advocate for precious metals, particularly gold and silver, as hedges against inflation and economic instability. In his latest remarks, he claimed that Bitcoin has failed to live up to its reputation as a “digital gold” and that its role as a hedge against economic turmoil is now being questioned.

Schiff argues that, unlike Bitcoin, gold and silver have historically performed better in turbulent economic times. He believes that Bitcoin’s recent price movement has proven that it is not as resilient as these traditional safe-haven assets.

He also pointed out that Bitcoin’s performance in the past four years has been underwhelming compared to precious metals. “Those who bought Bitcoin during this period would have been better off investing in silver,” Schiff asserted. His comments reflect his ongoing skepticism about Bitcoin’s value as an inflation hedge and its role in the broader financial market.

Potential Volatility After Bitcoin Options Expiry

As Bitcoin approaches its largest-ever options expiry, with approximately $28 billion in contracts due for settlement, market observers are predicting potential volatility in the cryptocurrency market. According to reports, the expiry day could see price stagnation as market makers work to suppress volatility. This is commonly done to ensure that the “max pain” price—where the majority of options expire worthless—is maintained.

However, once this pressure is lifted, there could be a sharp return of volatility. Historically, such a situation has sometimes led to an explosive rally in the months that follow. While it remains uncertain whether this will happen again, Bitcoin’s price could see significant movements as the options contracts settle.

Schiff’s concerns about volatility align with these predictions. He believes that Bitcoin’s unpredictable nature, coupled with external market factors, leaves it vulnerable to large swings in price. Given the uncertainty, Schiff’s advice to Bitcoin holders is to consider exiting their positions while the market provides an opportunity.

Bitcoin’s Market Outlook Amid Schiff’s Criticism

While Schiff’s remarks have sparked debate in the cryptocurrency community, they highlight the ongoing tension between traditional finance and the growing cryptocurrency market. Despite Bitcoin’s periodic price increases, it faces skepticism from individuals like Schiff, who argue that it does not offer the same stability as traditional safe-haven assets.

Bitcoin’s role in the financial ecosystem continues to evolve, and with growing scrutiny from regulators and concerns over its volatility, many are questioning whether it can fulfill its potential as a store of value. As Schiff continues to voice his opposition to Bitcoin’s long-term viability, the asset’s future remains uncertain, with both supporters and detractors watching closely for the next major price movements.