David Edwards
Economist and long-time gold advocate Peter Schiff has reiterated his skepticism about bitcoin, cautioning investors about a potential downturn he calls the “Trump dump.” In a post on social media platform X on October 22, Schiff pointed to bitcoin’s divergence from the gains seen across other Trump-related assets such as stocks and real estate, noting that this may signal weakness in the cryptocurrency’s near-term prospects.
“The Trump trade is on, yet bitcoin is the one Trump asset not rallying. It’s widely believed that a Trump win is bullish for bitcoin. So why isn’t bitcoin rising along with the betting odds on Trump?” Schiff questioned, suggesting that “maybe all the speculators have already bought,” hinting at a possible price dip ahead.
Schiff attributes bitcoin’s stagnant performance to overbought conditions, with demand potentially exhausted among speculators. He warns that if Trump-related assets lose momentum, bitcoin could face a sharper decline.
At the same time, Schiff sees a robust future for gold, describing it as entering what he calls the “mother of all bull markets.” He highlighted a recent record high in gold prices on October 20, which he attributes to persistent inflationary pressures stoked by central bank policies. Schiff emphasized that fiat currencies continue to erode in value, making gold a safer hedge in his view. “We are still early in what will likely be the mother of all gold bull markets,” he commented.
Schiff projects that inflationary pressures and central bank policies will drive more investors toward gold, possibly propelling its price as high as $4,000 per ounce. While some anticipate a Trump-related bitcoin rally, Schiff argues that current trends signal bitcoin may not deliver the expected returns, reinforcing his conviction in gold as a more stable store of value amid economic volatility.
