Peter Schiff Warns Treasury Market Breakdown Could Trigger Bitcoin, Stock, and Housing Crash

Economist and longtime gold advocate Peter Schiff has renewed his bearish outlook, warning that a breakdown in the U.S. Treasury market could spark a broad selloff across stocks, real estate, and cryptocurrencies while driving investors toward gold.

Speaking on his latest podcast, Schiff argued that rising Treasury yields are already signaling mounting stress in financial markets. The benchmark 10-year U.S. Treasury yield is hovering around 4.5%, while the 30-year yield is approaching 5%, levels he believes could climb even higher.

According to Schiff, higher bond yields translate into more expensive borrowing costs, putting pressure on the stock market and worsening housing affordability. He pointed to Freddie Mac data showing the average 30-year fixed mortgage rate remains near 6.49%, a level that continues to discourage many prospective homebuyers.

Schiff believes a deeper slowdown in the housing market would eventually force the Federal Reserve to intervene with additional monetary easing. In his view, renewed money printing would fuel inflation and further strengthen the long-term case for precious metals.

Gold has already benefited from growing economic uncertainty, trading above $4,100 per ounce after briefly falling below $4,000 in June.

While Bitcoin has remained relatively resilient compared with some risk assets, Schiff dismissed claims that the cryptocurrency functions as a safe-haven investment. Bitcoin is currently trading around $64,200 with a market capitalization of roughly $1.29 trillion, but it remains about 49% below its all-time high of $126,080 reached in October 2025.

Schiff argued that Bitcoin tends to move alongside technology stocks during market downturns rather than providing protection. He also questioned Wall Street's bullish forecasts for the cryptocurrency, pointing to the muted performance of Strategy’s preferred shares as evidence that investors may be less confident than public price targets suggest.

He further criticized Strategy’s Bitcoin-focused business model, noting that the company, which holds more than 840,000 BTC, has begun selling part of its holdings to fund dividend payments on preferred securities.

Despite his warning, Schiff acknowledged that his outlook depends on Treasury yields continuing to rise. Many market analysts still expect bond yields to ease if inflation cools. For now, however, he believes developments in the bond market will determine whether risk assets weaken further while gold extends its rally.