Bitcoin Faces Extinction Claim Amid Market Chaos

ByMaya Harborlight

Amid widespread market turbulence and plunging cryptocurrency prices, economist Peter Schiff has issued his most dramatic Bitcoin prediction yet: the digital currency that emerged from the ashes of the 2008 financial crisis will not survive the economic upheaval of 2025. His declaration comes as investors flee risk assets for traditional safe havens, sending gold to unprecedented heights.

“Bitcoin was born out of the financial crisis of 2008. Ironically, the financial crisis of 2025 will kill it,” Schiff proclaimed Thursday on social media platform X. The statement represents the culmination of years of Bitcoin skepticism from the gold advocate, who has consistently characterized cryptocurrencies as speculative bubbles rather than legitimate stores of value.

The timing of Schiff’s prediction is particularly notable, following what market observers have dubbed “Black Monday” on April 7, when nearly every asset class experienced significant losses. Bitcoin, which recently traded below $80,000, has struggled to maintain stability amid broader economic concerns, according to Crypto Times.

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A Tale of Two Assets

The divergent performances of gold and Bitcoin have become central to Schiff’s argument. While Bitcoin has experienced substantial volatility, gold has surged past $3,175, gaining $90 on April 9 alone after a $100 increase the previous day—establishing new all-time highs and reinforcing its status as the traditional crisis hedge.

“A month ago on Mar. 6th, Trump established the Strategic Bitcoin Reserve. So far, the value of the Bitcoin held in that reserve has declined by over 12%,” Schiff noted, contrasting the cryptocurrency’s performance with gold. “Had the U.S. sold it and added to our gold reserve, not only would we have avoided that loss, but we would now have a 2% gain.”

This stark comparison has resonated with investors seeking shelter from economic uncertainty, particularly as stagflation concerns mount amid rising yields and inflation expectations. Market analysts note that periods of economic contraction historically favor proven stores of value over emerging asset classes.

Broader Cryptocurrency Fallout

Ethereum, the second-largest cryptocurrency by market capitalization, has not escaped the market downturn or Schiff’s critical assessment. After crashing below $1,500 for the first time in over two years and dropping nearly 20% overnight to just above $1,400, Ethereum faces further pressure according to Schiff’s analysis.

“I don’t think it will be long before it breaks below $1,000,” he warned, extending his bearish outlook across the cryptocurrency ecosystem. This prediction gains significance in light of Ethereum’s previous association with Eric Trump, whose endorsement preceded a significant price decline in the digital asset.

Schiff has used these market movements to question the judgment of prominent cryptocurrency advocates, including MicroStrategy CEO Michael Saylor. “Now that Bitcoin is below $80K, if you want to prevent it from crashing below your average cost of $68K, you had better back up the truck with borrowed money today and go all in,” Schiff remarked, challenging Saylor’s debt-financed Bitcoin acquisition strategy, reports Yahoo Finance.

Economic Policy Concerns

Beyond cryptocurrency criticisms, Schiff has expressed alarm about broader economic indicators following President Trump’s April 10 announcement of a 90-day tariff pause. Despite the temporary market rebound triggered by this policy shift, Schiff highlighted the dollar’s dramatic decline—falling 2.3% against the euro and yen while dropping 3.9% against the Swiss franc—as evidence of underlying economic vulnerability.

“Does this seem like we’re winning the trade war?” he questioned as Treasury yields spiked and bond markets experienced unusual volatility. Schiff has consistently criticized current tariff strategies, drawing parallels to historical economic policy mistakes that exacerbated previous financial crises.

The economist’s concerns reflect growing market anxiety about the combination of aggressive trade policies, rising inflation expectations, and potential economic contraction—creating conditions reminiscent of the stagflation era of the 1970s, which preceded significant shifts in monetary policy.

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Historical Context and Future Outlook

While Schiff’s predictions paint a grim picture for cryptocurrency investors, Bitcoin has demonstrated remarkable resilience throughout its history. According to data cited by Yahoo Finance, Bitcoin has been declared “dead” 429 times to date, yet continues to maintain substantial value despite periodic downturns.

The theoretical calculation that a $100 investment made each time Bitcoin was pronounced dead would now be worth over $83 million illustrates the cryptocurrency’s historical ability to recover from apparent catastrophe. However, the current economic environment presents unprecedented challenges that could test this resilience in new ways.

As financial markets navigate the complex currents of 2025’s economic turbulence, the debate between traditional and digital assets has intensified, with advocates on both sides pointing to recent market movements as validation of their investment philosophies. Whether Schiff’s latest pronouncement proves prophetic or premature remains one of the most compelling questions in today’s financial landscape.

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