Schiff: Washington and Wall Street Inflate Bitcoin Bubble
Economist Peter Schiff told Cointelegraph that Bitcoin’s recent rally is an artificially inflated bubble driven by political support from Washington and financial backing from Wall Street rather than organic demand. He warns this external support is unsustainable and could vanish suddenly, triggering a collapse that might drive Bitcoin’s value to zero. Schiff challenged Bitcoin’s role as an inflation hedge or safe haven against a weakening dollar and argued that gold remains the true store of value amid financial uncertainty. Traders should watch for signs of a Bitcoin bubble burst, including weakening institutional demand and regulatory shifts.
Bearish
Peter Schiff’s warning that the Bitcoin bubble relies on unsustainable Washington and Wall Street support undermines market confidence. In the short term, traders may reduce long positions when institutional demand weakens or regulators tighten rules, leading to volatility and potential sell-offs. Over the long run, a sudden withdrawal of external backing could trigger a deeper correction. While resilient buyers might step in, bearish sentiment dominates as institutional outflows may outweigh any rebound.