Trade war chaos ‘spells end of Bitcoin', analyst says
In a blistering critique of President Donald Trump's tariff policies, renowned economist Peter Schiff has issued a stark warning: the financial crisis of 2025, fuelled by trade war chaos, could spell the end for Bitcoin and other cryptocurrencies.
Speaking days after the market upheaval dubbed 'Black Monday,' which erased gains across stocks and crypto, Schiff argued that Bitcoin — born from the ashes of the 2008 financial crisis — may not survive the economic storm now brewing. 'Bitcoin was born out of the financial crisis of 2008. Ironically, the financial crisis of 2025 will kill it,' he declared, pointing to tariffs as a key catalyst for the unfolding disaster.
Schiff, chief market strategist at Euro Pacific Asset Management, has long been a vocal critic of cryptocurrencies, favouring gold as a true safe haven. With gold surging past $3,175 per ounce on April 9 and Bitcoin slipping below $80,000, his thesis appears to be gaining traction. In a recent post on X, Schiff described the current crisis as potentially dwarfing the 2008 meltdown, with the US economy at its epicenter.
'Whether Bitcoin weathers the storm or succumbs to Schiff's grim prophecy, one thing is certain: the tariff-driven crisis of 2025 has exposed deep fault lines in the global economy, and the fallout is far from over,' says Jayakrishnan Bhaskar, a Dubai-based analyst said.
He contends that Trump's aggressive tariff strategy — marked by sweeping threats followed by abrupt pauses — has backfired spectacularly, exposing vulnerabilities in the US economy and eroding America's leverage in global trade negotiations.
'Current crypto market and Bitcoin volatility is a product of the complex ballet of macroeconomic and crypto-native influences. Trump's tariff reprieve and receding inflation are short-term reliefs, but investor sentiment remains cautious,' said Avinash Shekhar, co-founder & CEO, Pi42, citing over $772 million outflows from spot Bitcoin ETFs. This triggered concerns over global growth and heightened market volatility. Bitcoin's resistance is seen at $83,700, while support is $75,000.If macro conditions improve, Bitcoin could aim for the $85,000-$87,000 range. Reclaiming this zone is crucial to confirm bullish momentum, with $88,000 as the next target
Trump's tariff policy, initially designed to strong-arm trading partners, has instead sparked volatility and uncertainty. By imposing broad tariffs only to suspend them after 90 days, the administration may have signaled weakness, Schiff argues.
'Trump's tariff tantrums have diminished his negotiating power,' he said, suggesting that trading partners now view US threats as less credible. The fallout has been swift: the US dollar fell over 2.0 per cent against major currencies last week, amplifying fears of stagflation and undermining confidence in crypto as a hedge.
The crypto market has felt the brunt of this turmoil. On April 10, Bitcoin opened with intense bearish momentum, testing support at $81,302.63 by 7:30 UTC. A death cross on the MACD at 15:00 UTC deepened the gloom, followed by the RSI dipping into oversold territory. By late afternoon, Bitcoin broke down to $78,471.69. Though a golden cross later hinted at a potential reversal, the recovery was tentative, with Bitcoin climbing slowly amid lingering volatility.
Ethereum faced an even steeper decline, crashing below $1,500 for the first time in over two years, shedding nearly 20 per cent overnight to hover just above $1,400. Schiff didn't mince words: 'I don't think it will be long before Ethereum breaks below $1,000,' he warned, sending shockwaves through the crypto community.
Schiff's disdain for crypto extends beyond market analysis to personal rivalries. He reignited his feud with MicroStrategy's Michael Saylor, a prominent Bitcoin advocate, taunting him as Bitcoin dipped below $80,000. 'If you want to prevent it from crashing below your average cost of $68,000, you'd better back up the truck with borrowed money and go all in,' Schiff quipped on X. He also questioned how many Bitcoin holders are prepared to 'ride it to zero,' challenging Saylor's unwavering optimism.
Meanwhile, Schiff mocked Trump's US Bitcoin Reserve, noting it's already down 12 per cent since its launch — a sharp contrast to gold's relentless climb. The broader economic picture only bolsters Schiff's case. Markets are reeling from stagflation fears, with tariffs disrupting supply chains and driving up costs. The pause in tariffs, intended as a conciliatory gesture, has instead fueled uncertainty, leaving investors scrambling for safe assets.
Gold's rally reflects this flight to stability, while crypto's volatility underscores its fragility in Schiff's view. 'Crypto can't save you,' he argued, pointing to the dollar's weakness and the trade war's ripple effects as evidence.
Schiff's warnings have sparked heated debate, pitting crypto enthusiasts against traditional investors. For some, his gold-over-Bitcoin stance resonates in a climate of economic unease; for others, it's a relic of an outdated worldview. As markets teeter, the clash feels like a battle between past and future, with no clear victor.
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