Schiff Warns Trump’s Bitcoin Push Threatens Dollar, Predicts Crash
Gold advocate Peter Schiff has sharply criticized recent cryptocurrency legislation, warning that President Trump’s push for Bitcoin and related bills like the GENIUS Act and CLARITY Act risk legitimizing a “decentralized Ponzi scheme.” Schiff argued that stablecoins authorized under the GENIUS Act cannot shore up a weakening U.S. dollar and that Trump’s proposed 401(k) crypto executive order could accelerate dollar decline and trigger a Bitcoin crash. Drawing parallels to the 17th-century Dutch tulip mania, he dismissed stablecoin initiatives as “nonsense” and described digital assets as a modern delusion distracting from sound, gold-backed monetary policy. Schiff’s remarks coincided with a market pullback, as Bitcoin fell 2% and major altcoins including ETH, XRP, BNB and SOL retraced gains.
Bearish
Peter Schiff’s high-profile criticism and warnings may undermine trader sentiment, potentially accelerating a short-term sell-off in Bitcoin as investors grow concerned about regulatory support equating to Ponzi schemes. The linkage of stablecoin legislation failing to prop up the dollar adds to bearish pressure, as traders may exit positions amid fears of a broader market collapse. In the long term, persistent negative rhetoric from prominent critics could slow institutional adoption and erode confidence, sustaining downward pressure on Bitcoin prices. However, some traders may view dips as buying opportunities, possibly prompting temporary rebounds.