Economist Peter Schiff, who forecast the 2008 financial crisis, has warned that Bitcoin is a bubble and urged holders to sell “before the air comes gushing out.” In a post on X, he said the m
Economist Peter Schiff, who forecast the 2008 financial crisis, has warned that Bitcoin is a bubble and urged holders to sell “before the air comes gushing out.”
In a post on X, he said the market is focused on a deflating AI bubble and ignoring Bitcoin’s.
The difference, he argued, is that AI has actual value and Bitcoin has none. He called the midterm elections the final pin.
"While all the attention is focused on the deflating AI bubble, no one is talking about the Bitcoin bubble. The biggest difference between the two is that while AI has actual value, Bitcoin has none,” Schiff wrote.
“The midterms supplied the final pin. Sell now before the air comes gushing out,” he further added.
Schiff said Bitcoin’s fortunes are tied to President Donald Trump, whom he described as the Bitcoin president.
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Republicans support Bitcoin and Democrats do not, he said, and it would take even larger contributions from crypto whales to win over Democrats than they spent on Republicans.
The Democrats won Congress in the Nov. 3 midterms.
“Because Trump is the Bitcoin president. What's bad for Trump is bad for Bitcoin. Also Republicans support Bitcoin. Democrats don't. It's going to take even larger contributions from whales to buy Democrats then they already paid to buy Republicans,” he wrote in another post.
Schiff has made similar calls before. Earlier this year, in an interview with TheStreet, the Euro Pacific Capital CEO said Bitcoin was “broken” despite supportive legislation, state-level initiatives and a U.S. strategic reserve. Bitcoin was then near $76,000, well below last year’s highs above $110,000.
He said the policy support should have lifted the price, but it had fallen instead. In his words, “All of this good stuff should have resulted in a higher price for Bitcoin.”
He added that early investors may still profit, but he does not expect new buyers to see similar gains, and that Bitcoin will not replace gold.
Schiff used the collapse of the CLARITY Act to renew his attack on the cryptocurrency, arguing that Bitcoin's problem was never regulatory ambiguity but the asset itself.
Schiff has been building his case for months. In August, he declared the Bitcoin party over, noting that a broad risk-asset rally had lifted mining stocks and other holdings while Bitcoin barely joined in.
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