Peter Schiff Warns of Massive Crypto Losses Under Trump

In a post on the X platform, renowned Peter Schiff claimed that the Strategic Bitcoin Reserve is misleading Americans into risky investments.

Peter Schiff, a known Bitcoin critic and gold advocate, has strongly criticized the creation of a Strategic Bitcoin Reserve. He claims that this initiative is designed to deceive investors into purchasing cryptocurrency.

In a post on the X platform, Schiff accused former President Donald Trump of attempting to diversify the American people’s portfolio into Bitcoin. However, he argued that this move could backfire, leading to unprecedented financial losses for American investors.

“The Strategic Bitcoin Reserve is being set up to mislead the American people into making risky investments in crypto,′ said Schiff. “This administration is actively encouraging speculation in crypto assets, which could result in significant financial losses for those who invest.”

The economist stated that Trump’s open support for Bitcoin and other crypto-related projects is fueling what he describes as a speculative mania.

“President Trump’s known preference for crypto assets may lead more Americans to invest in crypto hoping to capitalize on the president’s purported interest or expertise,′ he added. “But this combination of political support and crypto hype could draw investors into making rash decisions without fully considering the risks involved.”

Earlier on, Schiff shared his reasons for doubting MicroStrategy’s Bitcoin strategy, citing the company’s heavy reliance on debt and volatile BTC prices. He argued that the firm’s financial health is at risk, especially with its stock dropping over 55% since November 2024.

“If you're thinking of investing in Bitcoin because of President Trump's support, you may want to reconsider. History has shown that blindly following political figures' investment advice can be disastrous for individual finances,′ he advised.

Schiff Examines TRUMP Meme Coin Decline

The economist highlighted the top meme coin, which quickly gained popularity due to Trump’s pro-crypto stance, has already declined by over 80% from its peak. He noted that many investors bought into the token expecting it to benefit from Trump’s influence.

“The hype surrounding meme coins linked to political figures is often used to manipulate and mislead. Many investors believe that assets associated with public figures will perform exceptionally well,′ he explained.

As of the time of this writing, the TRUMP meme coin stands at $11.08, a 32% decline in one month. The meme coin had a market capitalization of $2.21 billion and the trading volume recorded over the last 24 hours was $509.56 million.

Schiff's comments come after Trump spoke about the Strategic Bitcoin Reserve at the Blockworks Digital Assets Summit. Despite the Bitcoin critics, the Trump administration has revealed plans to hold crypto assets long-term rather than selling them early.

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