American economist Peter Schiff is urging investors with exposure to cryptocurrencies to consider selling Ethereum (ETH) and reallocating funds into Bitcoin (BTC).
It’s worth noting that Schiff has long been a critic of cryptocurrencies, particularly Bitcoin, arguing the asset has no intrinsic value and consistently advocating for gold instead.
Schiff pointed out that Ethereum is trading near the top of its range, making it, in his view, an ideal time to sell. He believes the recent upswing is more likely a bear market rally than a sustained recovery, he said in an X post on July 21.
“Ether is back near the upper end of its trading range again. If you own any, this is a great time to sell. As much as it pains me to say, selling Ether and buying Bitcoin with the proceeds is a better trade than holding Ether,” the economist noted.
His comments come at a time when Ethereum’s push toward the $4,000 mark has faltered, with the asset retreating amid profit-taking. At press time, ETH was trading at $3,685, down over 3% in the last 24 hours, though still up 23% in the past week. Bitcoin, by contrast, is consolidating around $119,060.
Ethereum’s competition
While Schiff remains skeptical of both Bitcoin and Ethereum as long-term investments, he views Ethereum as being at a relative disadvantage.
According to him, the second-largest cryptocurrency by market cap faces stronger competition in its use-case narrative, whereas Bitcoin continues to dominate as the leading digital asset. As such, he argued that Ethereum is underperforming compared to Bitcoin, and may continue to do so.
For investors insistent on holding crypto, Schiff sees a better risk-reward trade in rotating out of Ethereum and into Bitcoin, despite his broader reservations about the entire asset class.
Beyond the Ethereum-Bitcoin debate, Schiff also renewed his criticism of political support for digital assets.
The economist warned that efforts to promote domestic investment in crypto, particularly under President Donald Trump, could inadvertently accelerate the collapse of the U.S. dollar.
In such a scenario, Schiff maintained, while Bitcoin holders might expect to benefit, gold would ultimately emerge as the real winner. His remarks come as the U.S. ramps up crypto regulation, including the newly signed Genius Act targeting stablecoins.
Featured image via Peter Schiff YouTube
