Peter Schiff, the gold advocate and longtime Bitcoin critic, says the US midterms delivered the “final pin” to the Bitcoin bubble. While markets watch the AI bubble deflate, he urged holders on Thursday to sell now.
Unlike AI, Bitcoin has no real value, Schiff argued. His call came as BTC gave back its post-election gains after Democrats won both chambers of Congress on Tuesday.
Why Does Schiff Tie BTC to Trump?
In a follow-up reply, Schiff called Donald Trump “the Bitcoin president.” In his view, anything that hurts Trump also hurts Bitcoin.
He also argued that Republicans back Bitcoin, while Democrats do not. Winning over Democrats, he added, would cost whales even more than buying Republicans did.
The timing gave his Bitcoin bubble warning extra weight. BTC climbed above $80,800 after Tuesday’s vote, but the election rally reversed quickly within a day.
By Thursday, the price had slid toward $75,500 as tech stocks sold off.
Does the Bitcoin Bubble Call Ignore the AI Selloff?
Not everyone accepts Schiff’s party-line logic. One user replied that both parties dislike data centers, which makes the AI slump harder to pin on politics alone.
Indeed, chipmakers led Thursday’s $2 trillion stock wipeout. Investors feared that new Democratic governors in Texas, Georgia, and Ohio would pause data center construction. Bitcoin then fell alongside other risk assets.
Meanwhile, US spot Bitcoin ETFs drew fresh net inflows of $74.6 million the day after the vote. That suggests some institutions kept buying the dip.
Schiff has warned of a Bitcoin collapse for more than a decade, a record Binance founder CZ mocked in October. In February, he warned that BTC could crash to $20,000 if support near $50,000 broke. Bitcoin still trades well above that level.
For now, the Bitcoin bubble debate shifts to Washington. Elizabeth Warren, one of crypto’s toughest critics, is set to chair Senate Banking in January. A Democratic Congress takes office that same month, and its agenda will test whether Schiff’s political read holds.
