Key Takeaways

What’s happening with Bitcoin ahead of the September rate cut?

Bitcoin is facing near-term selling pressure, even as traders eye the upcoming policy shift for potential market momentum.

Why is Peter Schiff warning about Bitcoin now?

Schiff argues that Bitcoin is “topping out,” noting that while gold and silver are rallying, Bitcoin has struggled to capitalize on the optimism surrounding the Fed’s move.

As the Federal Reserve prepares for its anticipated rate cut in September, the crypto market is bracing for potential ripple effects, with Bitcoin [BTC] once again in the spotlight.

Optimism is high among some market participants, fueled by expectations that lower interest rates could reignite bullish momentum across digital assets.

However, caution is creeping into the narrative.

Peter Schiff takes a jab at Bitcoin

Bitcoin critic Peter Schiff has warned that BTC showed early signs of “topping out” ahead of the 17th of September FOMC meeting.

Taking to X (formerly Twitter), Schiff noted, 

“The Fed is about to make a major policy mistake by cutting interest rates into rising inflation. Gold and silver have broken out, with the rally finally confirmed by mining stocks leading the way. Yet instead of breaking out, Bitcoin is topping out. Time to change horses HODLers.”

Meanwhile, traditional metrics also hint at a tempered outlook.

For instance, the Bitcoin/Gold ratio stood at 31.53591 XAU, down 0.87% according to TradingView.

The debate on rate cuts

Fed Chair Jerome Powell was widely expected to confirm a policy shift at the FOMC meeting, with economists predicting a 25-basis-point cut.

Schiff argued the move could backfire, warning that cutting rates into rising inflation would deepen risks. He noted gold and silver’s strength ve

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Author: Ishika Kumari