Economist and longtime bitcoin critic Peter Schiff has warned that recent bitcoin price rallies may be misleading. He says these sharp moves higher are typical of bear markets and often come before deeper declines.
In a series of posts on X this week, Schiff argued that strong rallies can create false optimism. He said this keeps investors in the market when they should be preparing to exit.
Schiff pointed to recent gains in both bitcoin and Strategy (formerly MicroStrategy), noting that large daily jumps do not signal a healthy market. Instead, he described them as classic “bear market traps” and urged traders to “sell the rip.”
He also claimed that bitcoin’s broader downtrend is more important than short-term price moves. According to Schiff, bitcoin has fallen nearly 50% from its peak, and he believes the bear market cannot end without a major crash.
Schiff repeated his view that bitcoin has no intrinsic value. He compared it to gold, which he says has real-world uses such as jewelry and electronics, while bitcoin relies only on speculative demand.
Using gold as a benchmark, Schiff said bitcoin has lost about 60% of its value since its 2021 high. He also warned that corporate exposure to bitcoin, including large holdings by Strategy, could lead to growing losses if prices fall further.
Despite Schiff’s criticism, bitcoin supporters continue to disagree. They argue that bitcoin’s fixed supply, high liquidity, and growing institutional adoption support its long-term value, even during periods of volatility.
