Economist and long-standing crypto critic Peter Schiff has doubled down on his warnings about digital assets, saying the market is “finally starting to crack” in response to mounting global economic strain. Schiff’s comments followed a sharp sell-off triggered by U.S. President Donald Trump’s newly announced tariffs, which rattled both equity and crypto markets over the weekend.
Schiff was particularly scathing about the policy move, comparing the tariff declarations to earlier discussions around the potential creation of a Strategic Bitcoin Reserve under Trump.
“I thought the dumbest thing Trump would do was establish a Strategic Bitcoin Reserve. I was wrong,” he wrote in another post on X.
Despite early optimism on Friday suggesting that crypto might prove resilient to the geopolitical shock, Bitcoin tumbled more than 7.9% within 24 hours, falling to $77,100, according to CoinGecko. The leading cryptocurrency is now down 28% from its all-time high of $108,786, recorded in January. Ethereum also suffered a sharper blow, plunging 12% to $1,591—placing it more than 67% below its November 2021 peak.
The decline comes amid broader market losses as investors retreat from risk assets in response to global trade uncertainty and aggressive tariff implementation. For Schiff, this pullback is just the beginning of what he sees as a long-overdue reckoning for digital assets.
Schiff Blasts Crypto-Trump Ties
Peter Schiff also renewed his criticism of efforts to intertwine government policy with cryptocurrency, arguing that President Trump’s growing alignment with the digital asset industry could spell disaster for everyday investors. The economist, known for his long-held opposition to Bitcoin, has consistently voiced skepticism toward proposals like the Strategic Bitcoin Reserve—an idea floated as a symbolic nod to U.S. innovation.
Schiff warned that political endorsement of crypto, especially under the banner of Trump’s broader economic strategy, risks creating false confidence among retail participants. He also questioned the motives behind crypto leaders’ public support for the administration’s tariff program.
Crypto Liquidations Top $900M as Broader Markets Sink
The latest crypto market slide came amid growing global financial unease, with risk assets tumbling across the board. U.S. stock futures opened sharply lower on Sunday night, setting the tone for what appears to be another volatile week ahead.
Crypto markets mirrored the downturn, facing a wave of forced liquidations as prices plunged. According to data from CoinGlass, more than $900 million worth of positions were wiped out in the last 24 hours alone. Bitcoin-linked trades accounted for roughly $300 million of those losses, with both long and short positions hit hard.
The sell-off also extended into crypto equities, which saw red across the board. Shares of Strategy (formerly MicroStrategy) fell over 7%, while Coinbase dropped nearly 7%. Robinhood slid around 9%, and crypto mining firm Marathon Digital (MARA) plunged more than 8%, as investors trimmed exposure to anything tied to digital assets.
The synchronized retreat underscores crypto’s growing correlation with traditional markets—and its vulnerability during periods of macroeconomic stress. As global sentiment shifts in response to policy uncertainty, the digital asset sector continues to follow suit.
Quick Facts
- Bitcoin’s price fell below $78,000 amid escalating trade tensions.
- Major U.S. stock indices experienced significant declines following new tariff announcements.
- Peter Schiff criticized the Trump administration’s tariff strategy and questioned crypto market resilience.
- Crypto-related stocks, including Coinbase and Strategy, saw notable losses in response to market volatility.
