Jerome Powell

Chair

Bitcoin

Reserve

For years, economist and <a href="https://www.thestreet.com/crypto/markets/analyst-eyes-calm-before-storm-as-gold-and-silver-hit-record-highs" rel="noopener noreferrer nofollow">gold</a> bull&nbsp;<a href="https://www.thestreet.com/crypto/james-heckman-peter-schiff-bitcoin-gold" rel="noopener noreferrer nofollow">Peter Schiff</a> has stood firmly in the bullion’s corner—and he’s not backing down.
With prices climbing to new highs, Schiff, however, indicates that&nbsp;the surge says more about economic weakness than prosperity.
In a recent <a href="https://www.youtube.com/watch?v=HZED2f7fgAQ" rel="noopener noreferrer nofollow">CoinDesk</a> interview, Schiff argued that the precious metal’s rally contradicts the U.S. Federal Reserve’s inflation narrative.
<a href="https://www.thestreet.com/crypto/markets/peter-schiff-breakdown-tariff-chaos-bitcoin-impact" rel="noopener noreferrer nofollow">Related: Peter Schiff and senior industry veterans breakdown tariff chaos, market crisis, Bitcoin impact</a>
<h2 id="inflation-is-anything-but-contained">Inflation is anything but contained</h2>
According to Schiff, the surge in gold's price shows that investors—and even central banks—are still seeking shelter from eroding fiat value.
<blockquote>
 “It [rising gold price] doesn’t say good things,” he said. “If people weren’t worried about inflation, they wouldn’t be buying gold... Central banks know they lose holding dollars because inflation eats away the value. So, they’re moving into gold. Inflation expectations are anything but contained — it’s a warning sign.”
</blockquote>
Schiff also noted that the apparent growth in equity indexes masks a deeper loss of purchasing power.&nbsp;
<blockquote>
 “Yes, the Dow Jones looks five times higher than at the start of the century, but in gold terms, it’s down about 70%.”
</blockquote>
The <a href="https://www.thestreet.com/crypto/markets/crypto-traders-issue-warning-as-key-u-s-data-arrives" rel="noopener noreferrer nofollow">consumer price index </a>(CPI)—the&nbsp;key inflation indicator—rose at a <a href="https://www.bls.gov/news.release/pdf/cpi.pdf" rel="noopener noreferrer nofollow">2.7%</a> annualized rate in November, slightly below economists’ 3.1% forecast.
Federal Reserve Chair Jerome Powell <a href="https://www.youtube.com/watch?v=3BR1WlDbId8" rel="noopener noreferrer nofollow">said</a> that inflation has eased but remains “somewhat elevated” compared to the Fed’s 2% longer-run goal.
However, Wall Street&nbsp;economists warned that the inflation report is flawed&nbsp;because of missing data in the wake of the recent government shutdown, a Financial Times <a href="https://www.ft.com/content/bee83769-fa41-4d18-9dc2-4a46130c72a8" rel="noopener noreferrer nofollow">report</a> said.
<h3 id="more-news">More News:</h3>
<ul>
 <li><a href="https://www.thestreet.com/crypto/markets/holiday-debt-could-make-january-a-stress-test-for-markets-" rel="noopener noreferrer nofollow">Holiday debt could make January a stress test for markets</a></li>
 <li><a href="https://www.thestreet.com/crypto/markets/jim-cramers-recent-bitcoin-take-has-traders-leaning-other-way" rel="noopener noreferrer nofollow">Jim Cramer turns 100% bearish on Bitcoin</a></li>
 <li><a href="https://www.thestreet.com/crypto/trading/analyst-who-nailed-2021-market-collapse-predicts-incoming-bitcoin-crash" rel="noopener noreferrer nofollow">Analyst who nailed 2021 market collapse predicts incoming Bitcoin crash</a></li>
</ul>
<h2 id="why-inflation-and-jobs-data-matter-for-crypto">Why inflation and jobs data matter for crypto</h2>
<a href="https://www.thestreet.com/crypto/fed/muted-inflation-data-calms-crypto-markets-ahead-of-cpi" rel="noopener noreferrer nofollow">Inflation </a>and employment figures directly influence expectations for Fed rate decisions — and, by extension, the U.S. dollar and global liquidity.&nbsp;
Lower rates usually weaken the dollar and expand liquidity, conditions that have historically lifted Bitcoin and other digital assets.
When liquidity improves, risk assets often trade more smoothly. Tightening, on the other hand, tends to spark caution and lower trading volumes.&nbsp;
Markets usually react twice — first to the data, then to how it reshapes expectations for policy.
Crypto’s sensitivity to CPI surprises was clear in 2025: Bitcoin climbed above $84,000 after a cooler-than-forecast CPI print in March, while a hotter reading in February sent it below $95,000.
<a href="https://www.thestreet.com/crypto/markets/crypto-analyst-martinez-says-pce-28-bad-bitcoin" rel="noopener noreferrer nofollow">Related: Analyst says 'sticky inflation' could be bad for Bitcoin</a>
<h2 id="is-bitcoin-the-solution">Is Bitcoin the solution?</h2>
Asked about the potential of <a href="https://www.thestreet.com/crypto/markets/legendary-hedge-fund-analyst-warns-bitcoin-wall-street-crash-1929" rel="noopener noreferrer nofollow">Bitcoin </a>(BTC) as a hedge against inflation, Schiff dismissed the idea that scarcity alone makes it "sound" money.
<blockquote>
 "Just because it's scarce, doesn't make it sound money. What what really differentiates sound money other than the substance of it, versus paper money, is that real money, sound money, is a commodity, whether it's gold or or something else that's been used as money, it has its own intrinsic value," he said.
</blockquote>
He added that even fiat currencies rely on trust backed by government authority.&nbsp;
<blockquote>
 “With gold, you don’t need faith in politicians. [Sound] money speaks for itself.”
</blockquote>
Schiff further rejected claims that governments are <a href="https://www.thestreet.com/crypto/tag/genius-act-1" rel="noopener noreferrer nofollow">shifting</a> toward Bitcoin.&nbsp;
“Central banks are buying gold, not Bitcoin,” he said.
<blockquote>
 “Maybe you see exceptions like El Salvador,&nbsp;but a lot of that is more just PR and to try to lure some crypto money into the country. And I think to the extent that you have&nbsp; politicians talking about governments buying Bitcoin, they have been heavily influenced by the crypto industry that has made significant donations to their campaigns... So I don't believe any of this is legitimate.”
</blockquote>
At press time, Bitcoin was trading at&nbsp;$87,989.60, 30% lower than its record high north of $126,000 it hit in early October.
Gold's price, on the other hand, recently hit the all-time high of $4,549 an ounce. The bullion was trading at $4,334.9 per oz at the time of writing.
<a href="https://www.thestreet.com/crypto/markets/analyst-eyes-calm-before-storm-as-gold-and-silver-hit-record-highs" rel="noopener noreferrer nofollow">Related: Analyst eyes 'calm before storm' as gold and silver hit record highs</a>

Economist slams Fed for selling inflation under control narrative

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