Peter Schiff Calls Bitcoin ‘Broken’—Thinks Policy Tailwinds Aren’t Enough

• Peter Schiff said Bitcoin has “broken” despite pro-crypto momentum in the US, including supportive legislation and the creation of a strategic reserve.
• The economist noted Bitcoin remains near $76,000, below prior highs above $110,000 cited from last year.
• Schiff reiterated that while earlier investors may still profit, he does not expect new buyers to see similar gains and said Bitcoin will not replace gold.

Economist Peter Schiff said on Thursday that Bitcoin (BTC) has “broken” despite a wave of supportive political and institutional developments in the US.

Speaking in an interview with TheStreet this week, Schiff, CEO and Chief Global Strategist of Euro Pacific Capital, explained that recent pro-crypto momentum, including supportive legislation, state-level initiatives, and the establishment of a US Bitcoin strategic reserve, has not translated into higher prices.

“You’ve had a massive pumping of Bitcoin,” Schiff said, referring to the broader narrative around the asset.

Bitcoin’s price was up about 1% over the past 24 hours, trading above the $76,000 level, but remains below the highs above $110,000 seen last year, according to Schiff. 

He explained that “All of this good stuff should have resulted in a higher price for Bitcoin, and instead it resulted in a much lower price,” he said, describing the market as “very unhealthy.” Schiff added that while earlier investors may still profit from selling, he does not expect similar returns for new buyers. He also argued that Bitcoin will not replace gold as a store of value. 

On Stocktwits, the retail sentiment around BTC remained in the ‘neutral’ zone, while chatter around it remained at ‘normal’ levels over the past day. 

Mixed Signals Across Markets

Schiff’s bullish stance on gold comes as other asset classes show divergent trends. Gold was down about 0.22% on Saturday, while equities have continued to rally in recent sessions.

Speaking on CNBC Squawk Box, the popular “Big Short” investor Steve Eisman said technology stocks and banks have been advancing, while gold has lagged behind broader market gains, and has done “nothing.” 

However, according to analyst Titan of Crypto, Bitcoin’s current price movement mirrors the 2021-2022 cycle under the lens of a Gaussian channe. The current price level, said the analyst, stands at a major inflection point. 

In the last cycle, Bitcoin traded below the lower band, then regained it. While BTC has moved above the midline, it has yet to fully reclaim the channel, leaving the near-term trend uncertain.

Read also: Michael Saylor Compares Bitcoin Moment To Justin Bieber’s Breakout—Says Investors Have 10 Years To Get In

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