Ethereum News Today: Bitcoin Maximalist Peter Schiff Urges Ethereum Holders to Sell as ETH Hits $3,700 Yearly High

Peter Schiff, a prominent economist and advocate for Bitcoin, has reignited debate within the cryptocurrency community by advising Ethereum holders to sell their ETH and reallocate to Bitcoin. This recommendation emerged as Ethereum’s price climbed to a yearly high of $3,700, a level not seen since January 2024. The surge has been driven by robust institutional inflows and renewed market confidence in Ethereum’s utility within decentralized finance (DeFi) ecosystems. Schiff, known for his skepticism toward most digital assets beyond Bitcoin, argued that Ethereum’s structural vulnerabilities—exacerbated by growing competition from alternative smart contract platforms—make it a less reliable choice compared to Bitcoin’s perceived stability.

In a statement shared on social media, Schiff described Ethereum’s recent price momentum as “just another phony bubble” within a broader bear market for crypto. He urged investors to capitalize on Ethereum’s proximity to its trading range peak by selling and using proceeds to purchase Bitcoin, which he views as the superior asset. “As much as it pains me to say, selling Ether and buying Bitcoin with the proceeds is a better trade than holding Ether,” Schiff wrote. His analysis relies on chart patterns rather than market sentiment, a method he claims highlights Ethereum’s tendency to trail Bitcoin’s movements while lacking the latter’s “hard-money” appeal.

While Schiff’s stance aligns with his long-held belief that Bitcoin remains the best hedge against fiat currency devaluation, critics within the crypto community have pushed back. Companies like SharpLink Gaming, which holds over $1 billion in ETH and actively stakes the asset, have challenged his narrative. The firm edited Schiff’s social media post to emphasize Ethereum’s staking benefits, arguing that the network’s utility in decentralized finance justifies its market position. Analysts such as Benjamin Cowen also questioned the timing of Schiff’s warning, suggesting the ETH/BTC ratio may already have bottomed, indicating a potential reversal in the asset’s trajectory.

The debate underscores a fundamental divide in crypto investing: whether to prioritize Bitcoin’s role as a store of value or Ethereum’s programmable blockchain capabilities. Schiff’s advocacy for Bitcoin reflects his adherence to a hard-money framework, a perspective shared by those skeptical of fiat currencies. Conversely, Ethereum’s recent institutional adoption—bolstered by spot ETF inflows and corporate investments—has reinforced its position as a functional asset. Firms like BitMine and SharpLink Gaming have expanded their ETH holdings, viewing staking as a means to support network security and generate passive income. This divergence in strategies highlights the ongoing tension between Bitcoin maximalism and altcoin utility-driven growth narratives.

Analysts remain cautious about the implications of Schiff’s recommendation. While some acknowledge Bitcoin’s resilience in regulatory environments and its established market dominance, others point to Ethereum’s ongoing upgrades and ecosystem expansion as factors that could sustain its value. The market’s response to such debates often hinges on macroeconomic trends and technological advancements, with no clear consensus yet on the optimal allocation strategy. As Ethereum approaches a potential $5,000 milestone, the discussion is likely to intensify, reflecting the dynamic and speculative nature of cryptocurrency markets.