Schiff Predicts Bitcoin’s Death in Current Financial Crisis

Renowned economist and gold advocate Peter Schiff has issued a stark prediction that the cryptocurrency born from the 2008 financial crisis will meet its demise in the current economic turmoil. His provocative Thursday statement that “the financial crisis of 2025 will kill” Bitcoin comes as traditional safe havens reach record highs while digital assets struggle to maintain stability.

“Bitcoin is losing,” declared Schiff, CEO of Euro Pacific Asset Management, pointing to the widening performance gap between the cryptocurrency and gold, according to TradingView. While gold surged to an unprecedented $3,176 per ounce Thursday, Bitcoin has fallen nearly 30% from its February peak, trading at approximately $78,669.

The dramatic divergence between these competing “store of value” assets comes amid heightened market turbulence, with the S&P 500 plunging 3.46% Thursday after what Schiff characterized as merely a “bear market rally” on Tuesday. His assessment suggests deeper economic problems may lie ahead for both traditional and digital markets.

The Latest Trending Headlines in Your Area:

Harsh Historical Comparison

Schiff’s criticism extends beyond price performance, reaching into historical comparisons that have raised eyebrows across financial circles. “Bitcoin was born out of the financial crisis of 2008. Ironically, the financial crisis of 2025 will kill it,” he stated on social media, as reported by Yahoo Finance.

This apocalyptic prediction for cryptocurrency aligns with Schiff’s broader economic warnings. He has consistently labeled Bitcoin a “digital risk” rather than “digital gold,” challenging its fundamental value proposition as a hedge against economic instability. The current market conditions, with gold significantly outperforming digital assets, appear to temporarily vindicate his long-held position.

Schiff has also drawn controversial parallels between current economic policies and historical disasters. He recently compared Trump’s tariff strategies to the “infamous Hindenburg disaster,” suggesting they expose critical vulnerabilities in the U.S. economy that will ultimately impact digital assets.

Geopolitical Dimensions

The economist dismissed speculation about China potentially purchasing Bitcoin as a strategic counter to U.S. cryptocurrency initiatives. “They are not that dumb. They are happy to sell us Bitcoin, though,” Schiff remarked, contradicting Wyoming Senator Cynthia Lummis’s prediction of an emerging “arms race” over Bitcoin between global superpowers.

Schiff further claimed that China has already sold its Bitcoin holdings, implying the country recognizes fundamental flaws in cryptocurrency that enthusiasts overlook. This perspective challenges narratives about Bitcoin’s potential role in reshaping international financial power dynamics.

His skepticism extends to domestic cryptocurrency endorsements as well. Schiff has specifically cautioned against following Eric Trump’s investment guidance after his endorsement of Ethereum preceded a significant price decline in the second-largest cryptocurrency.

Pattern of Resilience

Despite Schiff’s confident prediction of Bitcoin’s demise, historical data suggests caution before writing cryptocurrency’s obituary. According to Bitcoindeaths.com, cited by Yahoo Finance, Bitcoin has been declared “dead” a remarkable 429 times throughout its history.

A theoretical investment strategy of placing just $100 into Bitcoin each time it faced one of these death pronouncements would have yielded more than $83 million today. This pattern of recovery following pessimistic predictions has characterized Bitcoin’s development, though current market conditions present unique challenges.

The cryptocurrency has survived multiple market cycles, regulatory crackdowns, technical challenges, and previous financial crises. Whether the current economic turbulence represents a fundamentally different threat remains a central question for investors and economic observers.

Photo Source: 24K-Production/DepositPhotos

Market Impact

As traditional financial markets experience extreme volatility, with stock indexes swinging dramatically and gold setting new records, the debate between gold advocates like Schiff and cryptocurrency enthusiasts has intensified. Gold’s strong performance during this period has certainly strengthened the position of traditional safe-haven proponents.

However, cryptocurrency supporters point to the young asset class’s resilience through previous market downturns and its fundamental value proposition as protection against currency devaluation and government financial control. The current divergence in performance may represent a temporary phase rather than a permanent realignment, they suggest.

Schiff’s warning to investors that it’s “not too late to sell stocks” extends his bearish outlook beyond cryptocurrencies to the broader market, suggesting he anticipates continued economic difficulties that could further test both traditional and digital assets.

As markets navigate these turbulent waters, Schiff’s provocative prediction about Bitcoin’s fate has added fuel to an already heated debate about the role of different asset classes during periods of financial stress.

The Latest Trending Headlines in Your Area: