Key Insights:
- Peter Schiff criticized the US government for creating a Bitcoin reserve. He pointed out that the reserve’s BTC value had dropped 12 percent.
- He stated the country could have gained 2 percent if it had sold Bitcoin and invested in gold instead.
- Schiff believes the current crypto regulation approach weakens the government’s financial credibility during uncertain economic times.
Peter Schiff has renewed his criticism of the United States’ decision to form a national Bitcoin reserve. This time, in his criticism, he cited recent market losses.
He claimed the reserve has already suffered a 12% value decline. This could have been avoided with a gold-focused strategy.
This critique arises from growing worries about the economy’s stability. It also reflected heightened market volatility driven by trade policy changes and recession risks.
Peter Schiff Criticizes US Bitcoin Reserve
The US established its Bitcoin Reserve on March 6, 2025, as part of a new digital asset initiative. Economics expert Peter Schiff stated that the US government’s Bitcoin reserves have lost over 12%. This decline has occurred since the reserves were first established.
Schiff compared the performance of Bitcoin to gold over the same timeframe and noted that gold had gained approximately 2%. According to his analysis, the government could have earned profits through BTC trading followed by Gold investment. He stated,
“So far, the value of the Bitcoin held in that reserve has declined by over 12%. The United States could have eliminated the Bitcoin loss of 12% because selling BTC would have allowed the purchase of additional gold within our reserve to produce a 2% increase.”
Despite the recent Bitcoin rebound to $80,000, Schiff questions the logic behind government-led crypto exposure. Schiff believes the situation demands stable macroeconomic stability since short-term profits cannot outweigh long-term security.
Critics argue that the revealed flaws in crypto regulations highlight weaknesses in the system. They believe this exposes the government’s inadequate approach to regulating cryptocurrency.
Schiff Warns of Deepening US Recession
Schiff evaluated the performance metrics of the Bitcoin reserve alongside a Trump economic plan assessment that suggested rising recession risks.
He argued that Trump’s proposed tariff increases included 50% levies on Chinese imports. This may cause additional instability in an economically unstable system.
Schiff said this economic slump would become the most serious since the Great Depression. Peter Schiff argues that the current market value of stocks surpasses realistic asset valuations. He attributed this to the lack of a market correction following new trade policies.
He anticipated a significant decline in stock prices exceeding 50% when economic recession indicators prove increasingly strong. Schiff advised investors to preserve stability by being cautious during the optimistic market phase following the cryptocurrency market recovery.
The expert criticized the Federal Reserve for its inability to stop the approaching economic slowdown. He said introducing new liquidity into the economy to prevent a recession could trigger hyperinflation instead of avoiding economic decline.
According to Schiff, the economy will suffer a loss when monetary policy selects short-term relief instead of creating long-term resilience.
Crypto Regulation Lacking, Says Peter Schiff
Schiff maintained that gold provides better financial protection against economic instability and inflation risks. Rising gold values strengthened his longtime prediction. This demonstrated that traditional assets yield better results than speculative ones when markets experience upheaval.
The US administration maintains a different policy approach from Schiff’s. When social media users pointed out missed Bitcoin gains under the previous administration, Schiff dismissed these claims. He labeled the comparisons as irrelevant to the current market context.
Per him, performance assessment begins at the reserve launch date and stops after the previous periods do not matter. The use of speculative profits lacks stability for establishing a national reserve system.
Schiff delivered evidence that an inadequate crypto regulatory framework causes markets to become more volatile. According to Schiff, the unpredictable nature of policy structures makes digital assets increasingly dangerous for national portfolio holdings.
His statements have reignited the debate on incorporating electronic money into official economic strategies. This discussion also touches on the role of the Bitcoin Reserve in shaping national policies.
Bitcoin Hits $80K Despite Schiff Warning
Despite Schiff’s warnings, Bitcoin recently surged to $80,000 after a sharp market correction. Broad economic conditions continue to present significant threats to investors, who remain wary of the situation.
Experts state that although the market spike indicates robustness, it does not necessarily mean ongoing business growth. The absence of specific crypto regulations has raised investor stress because government-controlled portfolios include volatile assets.
The combination of geopolitical tensions and unpredictable monetary policy changes severely increases market uncertainty.
Schiff believes that current economic instability makes gold the preferred asset. He argues it offers better long-term value storage than a Bitcoin reserve.
