Peter Schiff says the next major market crash will begin in the bond market, not in Bitcoin (BTC). The longtime gold proponent argues that rising U.S. Treasury yields, not crypto volatility, pose the real threat to global markets. On his latest podcast, Schiff warned that a breakdown in Treasuries could ripple through stocks, housing, and cryptocurrencies. He expects investors to eventually flee into gold as those risk assets unwind together.
Bond Market Breakdown
The warning centers on a bond market that Schiff says has already begun to break. The 10-year Treasury yield sits near 4.5%, while the 30-year has climbed toward 5%. He expects both to head sharply higher. Rising yields lift borrowing costs everywhere. Schiff argues that this would pressure stocks, deepen a housing affordability problem, and slow growth.
Impact on Bitcoin
Bitcoin has held up better than many of Schiff’s critics expected, trading near $64,200, with a market cap around $1.29 trillion. Even so, it sits roughly 49% below its record of $126,080 from October 2025. That drawdown, Schiff argues, already shows Bitcoin does not behave like a safe haven. He expects it to fall further when stocks drop, rather than hold firm like gold. According to Schiff, “Although I believe that when tech stocks go down, Bitcoin will be correlated. It just doesn’t go up when tech stocks go up. But when tech stocks go down, it’s gonna go down a lot more.”
Based on reporting from crypto.news.