Prominent market analyst Peter Schiff stated on Tuesday that only a strategically positioned Bitcoin BTC/USD reserve introduced by President Donald Trump has the potential to halt the ongoing market decline.
What occurred: In a post on X, Schiff remarked, “I believe the sole factor that can postpone a Bitcoin crash is Trump.” He hinted that substantial backing from Trump for a strategic reserve funded through Bitcoin acquisitions might effectively counter the market downturn.
Schiff drew a parallel to quantitative easing, wherein the Federal Reserve purchases government bonds to stimulate economic growth. Nevertheless, he considered this scenario to be improbable.
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Schiff further ridiculed Bitcoin enthusiasts, remarking, “Turn off the lights, the Bitcoin $100,000 celebration is finished.”
He further noted that although “Bitcoin is entering a bear market,” there was a noticeable lack of panic or capitulation, suggesting that the downturn is merely in its initial stages.
Why It Matters: Schiff’s remarks follow Bitcoin’s drop to a three-month low of $86,000, dragging the entire cryptocurrency market down.
Schiff has expressed strong opposition to the idea of a strategic Bitcoin reserve, describing it as the “worst monetary mistake” the U.S. could possibly make.
After taking office, Trump issued an executive order that included an assessment of establishing a “strategic national digital asset stockpile,” not limited to just Bitcoin.
Schiff criticized this move as merely an attempt to “satisfy donors” rather than a sincere effort to promote the cryptocurrency sector.
Price Action: At the time of writing, Bitcoin was priced at $88,714.28, reflecting a 3.63% decline in the past 24 hours, based on data from Benzinga Pro.
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