Key Takeaways
- Peter Schiff dismissed Bitcoin’s surge above $72,000 as a “fakeout,” arguing the Treasury-driven rally will ultimately favor gold.
- Bitcoin’s rebound has been fueled by lower Treasury yields, a weaker dollar, heavy short liquidations and renewed ETF inflows.
- Trump’s White House crypto push, the CLARITY Act and a potential US pathway for Hyperliquid have added a regulatory catalyst to the rally.
Bitcoin’s push above $72,000 has revived hopes that the months-long crypto downturn may finally be losing momentum. Peter Schiff is not buying it.
The longtime Bitcoin critic called the move a “fakeout, not a breakout” on Thursday.
Schiff argued that traders have misread the US Treasury’s surprise expansion of its bond-buyback program.
Shiff’s New Attack on Bitcoin
Schiff said Bitcoin investors have long expected a return to easier monetary conditions to lift both BTC and gold.
However, according to the economist, only the latter will ultimately benefit, ending his post with a familiar message: sell Bitcoin and buy gold.
Bitcoin nevertheless climbed to around $72,200 on Aug. 20, extending a rally that began after the Treasury moved to calm pressure in the government bond market.
Why Bitcoin Suddenly Rallied Above $72K
The move has not come from a single catalyst. Several macro, regulatory, and market-structure developments landed within a short window.
- Treasury buybacks: The Treasury doubled planned buybacks of 10- to 30-year bonds from $2 billion to at least $4 billion per operation between Sept. 9 and Nov. 4. Long-term yields fell, and the dollar weakened following the surprise announcement.
- Trump and the CLARITY Act: President Donald Trump used an Aug. 19 White House meeting with crypto executives to call for Congress to pass a “fair version” of the CLARITY Act, boosting hopes for clearer US digital-asset rules.
- Hyperliquid’s potential US entry: Trump also said CFTC Chair Michael Selig is working to bring Hyperliquid into the US in a “fully compliant and legal” way, adding to expectations that offshore crypto trading activity could move onshore.
- ETF demand returned: US spot Bitcoin ETFs recorded roughly $517 million of net inflows on Aug. 19, providing another source of spot demand as BTC accelerated higher.
- Short sellers were squeezed: More than $3.1 billion in crypto shorts were liquidated during the move, including roughly $1.77 billion tied to Bitcoin, forcing bearish traders to buy back positions and amplifying the rally.
Is Schiff Right About a Bitcoin Fakeout?
There is still reason for caution.
Treasury officials have characterized the expanded buybacks as a liquidity-management measure, not quantitative easing. The purchases are also small relative to the roughly $32 trillion Treasury market, meaning they do little to resolve broader concerns over US deficits, inflation and long-term borrowing costs.
Bitcoin also remains around 18% lower in 2026 despite its rebound, leaving the latest move well below the October 2025 record above $126,000.
For now, however, Schiff is betting that the same macro forces exciting Bitcoin bulls will ultimately prove far more powerful for gold.
Whether $72,000 becomes a genuine breakout or another failed recovery will depend on whether ETF demand, regulatory optimism and easing bond-market pressure persist after the initial rush.
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
