- Peter Schiff criticized Trump’s Bitcoin Reserve idea and pushed gold as a safer alternative
- Bitcoin’s price action has been inconsistent lately, on the back of U.S. recession concerns
As Bitcoin [BTC] struggles to regain momentum amid the ongoing market downturn, long time critic Peter Schiff has resurfaced with fresh criticism. This time, targeting Donald Trump’s proposal for a U.S Bitcoin Reserve.
Schiff slams Trump’s Bitcoin Reserve idea
As the cryptocurrency fell on the charts, Schiff doubled down on his gold-first position. He claimed that had the government sold its Bitcoin holdings to purchase gold instead, the nation would be in a far better financial position.
Taking to X, Schiff noted,
“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%. 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.”
Why the criticism?
Schiff backed his argument by highlighting that amid the recent volatility, gold would have yielded a modest 2% gain had the U.S. chosen to prioritize the precious metal over Bitcoin.
He emphasized once again that gold offers a more reliable hedge in turbulent economic conditions.
When challenged by a user who argued that the Biden administration had already missed significant profits by offloading Bitcoin early, Schiff was quick to dismiss the remark as “irrelevant.”
According to him, gains or losses should only be assessed from the moment the concept of an official Bitcoin reserve is introduced – Not before.
Schiff said,
“That’s irrelevent, as we didn’t have a Strategic Bitcoin Reserve years ago. We can only count how much money the government gains or loses going forward of the reserve.”
What’s more?
Schiff’s remarks were swiftly dismissed by the crypto community though, with X user “The Bitcoin Therapist” adding,
“You literally held gold and had the absolute worst ROI over a 15 year period only to finally be right in 2024-2025. Cherry picking is retarded. Bitcoin is and always will be a more favorable investment.”
Doubling down on his warnings, the exec argued that despite the recent crypto market crash, U.S equities are still dangerously overvalued.
He also cautioned that if a recession unfolds, it could be the most severe since the Great Depression. Schiff went on to add that even a 50% correction in the stock market might not fully capture the economic damage ahead.
Backing his concerns, predictions platform Polymarket currently assigns a 65% probability to a U.S recession in 2025.
Will the Fed come to rescue?
When another user challenged his outlook, dismissing the chances of a downturn, Schiff responded with characteristic sarcasm. In facr, he suggested that only the Federal Reserve could delay the inevitable.
While Peter Schiff doubled down on his recession warning, blaming Trump’s Bitcoin Reserve plan and mocking any hope of recovery, the market itself offered no comfort.
In fact, Trump recently urged Jerome Powell to cut interest rates. The President also accused the official of playing political games.
For its part, the world’s largest cryptocurrency had recovered somewhat on the charts, with Bitcoin trading above $81k after a 7% hike at press time.
Even so, its inconsistent movement has only reinforced the prevailing market anxiety, with recovery still looking distant and investor confidence hanging by a thread.
