Peter Schiff on Thursday called Bitcoin’s (CRYPTO: BTC) surge above $72,000 a fakeout, arguing gold is the real trade while Bitcoin surged 10% against gold’s 4% over the past 24 hours.
What Did Peter Schiff Say About Bitcoin’s Rally Above $72,000?
Schiff posted on X that the Treasury buyback announcement caught markets by surprise and that Bitcoin investors who expected easy money to lift both gold and Bitcoin are only half right.
“Sell Bitcoin, buy gold,” he wrote. His argument is that the return to loose monetary conditions is a gold story, not a Bitcoin story, and that Bitcoin’s rally above $72,000 is a mechanical short squeeze rather than a genuine demand-driven breakout.
Why the BTC/Gold Ratio Tells a Different Stor
Analyst Adam Livingston noted on X Thursday that Bitcoin priced in gold, as measured by SPDR Gold Shares (NASDAQ:GLD) is up 34.8% since its Feb. 28 low.
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A return to the October ratio from that level would imply roughly 96% upside, pointing toward $140,000 Bitcoin. “I wouldn’t want my money in anything else right now,” Livingston wrote.
What Caused Bitcoin’s Breakout Above $70,000?
According to CoinDesk, Bitcoin spent six weeks compressed between $62,000 and $66,900 with volatility at multi-year lows, a setup that encouraged traders to pile into short positions fading every approach to the range high. That left a thick band of short liquidation levels between $65,000 and $67,000.
The Treasury’s announcement that it would double long-dated buybacks to at least $4 billion pulled the 30-year yield back from 5.337%, its highest since 2007, and the resulting bid cleared the range ceiling.
Once that broke, $3 billion of shorts were force-bought into thin supply and Bitcoin surged more than 8% in under an hour.
Meanwhile President Donald Trump’s comments later in the session added a second leg, with his call for Congress to pass the Clarity Act and a suggestion the US may buy sizable amounts of Bitcoin pushing price above $70,000.
Is Bitcoin’s August 2026 Rally Part of a Bigger Trend?
Bitcoin is on course for its first positive August since 2021, up 14% this month, and its first quarterly gain since Q3 2025, up 23% this quarter.
The Fear and Greed index jumped from 41 to 62 overnight, flipping from fear to greed, while daily Bitcoin trading volume surged 250% to $59 billion.
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