Gold Could Hit $20,000? Peter Schiff Says “Bitcoin Is a Bubble”

▲ Bitcoin (BTC), Gold/AI-generated image

As warnings emerge that Bitcoin (BTC) will underperform gold in terms of returns, the options market is presenting a dramatic forecast that gold prices could surge to $20,000, signaling a potential seismic shift in the asset market.

According to crypto media outlet CoinGape on February 17 (local time), chief strategist Peter Schiff analyzed that Bitcoin will deliver weaker performance compared to gold. Schiff diagnosed that the U.S. economy will face a crisis in 2026 more severe than the 2008 financial crisis, and that a weakening dollar and rising debt will act as catalysts driving gold prices higher.

Movements in the options market further support this outlook. Despite gold plunging 10% in a single day and recording its worst drop in 46 years, options investors continue to place bold bets that gold will surpass $10,000 and $15,000 and eventually reach $20,000. Analysts at Societe Generale explained that investors are viewing the current price correction as a buying opportunity and are betting on extreme upside volatility.

Schiff remains pessimistic about Bitcoin. He criticized Bitcoin for failing to function as digital gold and instead behaving like a risk asset that moves in tandem with stock market declines. Noting that gold surged 64% in 2025 while Bitcoin showed relative weakness, he warned that 2026 could be an even harsher year for Bitcoin holders.

Institutional investor activity is also cited as a factor supporting gold’s strength. Goldman Sachs raised its 2026 gold price target from $4,900 to $5,400, projecting that continued purchases by central banks and inflows into exchange-traded funds (ETFs) will drive prices higher. In contrast, Bitcoin faces the risk of additional declines due to potential outflows from spot ETFs, which could create a supply-demand imbalance.

Schiff presented a minimum downside target of $50,000 for Bitcoin and advised investors to sell Bitcoin above $87,000 and reallocate assets into gold and silver. Amid a macroeconomic environment marked by dollar weakness and mounting inflationary pressure, the value of tangible assets like gold is expected to shine further, while Bitcoin may undergo the deflation of a speculative bubble.

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