Divided Opinions in Crypto Market: Schiff Warns of Bitcoin Crash, Hayes Bets on Privacy Coins

Schiff Attacks Bitcoin Rally Following Venezuela Events

Prominent Bitcoin critic and precious metals dealer Peter Schiff has once again sharply criticized the leading cryptocurrency at the start of the year. On platform X, he urgently warned investors: "Don't believe the hype. Use the rally to sell and buy gold instead" ^[1].

The background to his statements is the recent Bitcoin rally to nearly $95,000, which was connected to events in Venezuela. Following the arrest of Nicolás Maduro by U.S. special forces on January 3, Bitcoin reacted as a "geopolitical seismograph" ^[1]. Since Venezuela is estimated to potentially hold up to 600,000 BTC as shadow reserves, the market is now speculating on a possible official strategic reserve under new leadership ^[1].

Schiff, who has been warning of a cryptocurrency collapse since 2014, called the news surrounded by "bullshit" from "pumpers" trying to artificially drive up the price ^[1]. Bitcoin is currently trading at $93,500 ^[1].

Twelve Years of Skepticism Despite Massive Price Gains

Despite his consistent warnings over more than a decade, Bitcoin has developed quite differently than Schiff predicted. Since his first warning in 2014, the cryptocurrency has risen from around $750 to currently nearly $95,000 – a gain of several thousand percent ^[1]. Nevertheless, the American stockbroker and author maintains his assessment and emphasized in an interview: "Bitcoin will crash – and investors will lose" ^[1].

Recent market developments, however, appear to strengthen Schiff's position. In 2025, gold proved to be the clear winner in the battle of stores of value: while Bitcoin achieved only a net return of five percent, the gold price posted an impressive rally of 65 percent, reaching new record highs ^[1]. This trend continues into 2026, with one ounce of gold currently trading at just under $4,500 ^[1].

Hayes Predicts Massive Reflation Trade

Arthur Hayes, former CEO of crypto exchange BitMEX, takes a completely contrary position. In his latest post, he describes the Venezuela intervention as a "colonial raid" aimed at securing cheap oil ^[2]. His thesis: "In America, you don't exist without a car" – gasoline prices are election-decisive, which is why politicians will do everything to keep them low ^[2].

For capital markets, however, Hayes sees the intervention as a blessing. His conclusion: "As long as stock markets rise and oil prices remain low, Trump will continue printing money" ^[2]. The Bitcoin price will rise due to the expected flood of money. His recommendation to traders: "When oil and yields rise sharply, it will be time to reduce risk. But as long as that doesn't happen: buy" ^[2].

Privacy Coins as the Next Narrative Hype

Hayes bases his optimistic assessment on the assumption that the only concern of the average voter is the economy ^[2]. His forecast for 2026: a massive reflation trade under a president whom he describes as "the most socialist since Franklin D. Roosevelt" ^[2].

His portfolio reflects this conviction: Hayes holds long positions in Bitcoin and Ethereum – as well as a "pile of privacy coins" ^[2]. He sees Zcash as particularly promising, with one analyst even attributing potential of up to $1,000 ^[2]. His final advice to traders: "Stop getting upset about socialism, communism, or capitalism. Nobody lives these isms. Just buy" ^[2].