The crypto market is trying to recover after Bitcoin [BTC] fell nearly $62,000 over the past two days.
During this fall, Peter Schiff never missed an opportunity to criticize Bitcoin. He called it a “bubble” and suggested this could be the start of its collapse.
But Bitcoin is now showing some signs of recovery. After the dip, the world’s largest cryptocurrency bounced back to around $68,197, up nearly 4.75% in the past 24 hours.
Peter Schiff slams Bitcoin again
Still, Schiff went to X and noted,
“Imagine what would happen to Bitcoin if Trump posted the following on Truth Social: “I think that stupid stock broker Peter Schiff was right. Bitcoin is a Ponzi.”
Interestingly enough, Schiff changed his tune slightly this time.
Instead of criticizing Bitcoin solely on technical or economic grounds, he began linking its volatility to politics, especially the support he believes BTC is receiving from US President Donald Trump and his administration.
Schiff’s argument suggests that Bitcoin survives thanks to political support and that if government support shifts, the assets could suffer.
Has this comment affected the price of Bitcoin?
But the market reacted differently. When Schiff’s comments started circulating, Bitcoin was trading around $64,236, but the price moved rose sharply towards $68,000.
However, this meeting was not necessarily about supporting Trump or rejecting Schiff’s positions. A closer look at the charts reveals a more fundamental explanation.
There was no major news or strong fundamental reason behind the increase. Instead, many traders who had bet on a falling price, i.e. the short sellers, were forced to close their positions when Bitcoin started to rise.
Source: CoinGlass
For context, when short sellers rush to buy back Bitcoin to cut their losses, this pushes the price up even faster, known as a short squeeze.
So rather than being a political statement, the move looks more like a technical leap.
A mixed bag of critics and supporters
As expected, the crypto community has pushed back on Schiff’s comments and said,
“If one person’s post can kill you, then it was never Bitcoin. That’s the whole point.”
Echoing similar sentiments, another user added,
“Markets respond to headlines. Protocols do not. Bitcoin is not governed by social media posts.”
However, some also supported Schiff’s story, as highlighted by another X user argued,
“Schiff has been predicting Bitcoin’s collapse since $200. We’re already down 49% from ATH without the need for a trump post. We’re still waiting.”
Is Schiff right this time?
All in all, the current market fear stems from a simple contradiction. Bitcoin’s biggest rally, when it reached around $124,500, occurred after Donald Trump returned to the US presidency.
But Peter Schiff is now trying to turn that story around. He argues that the $124,000 peak was not a sign of long-term strength. Instead, he believes it was a political bubble, driven more by excitement than by real fundamentals.
Recently, Schiff even argued that selling gold to buy Bitcoin was a “big mistake.”
In simple terms, Schiff says that the same political support that pushed Bitcoin up could also lead to its fall.
But for now it remains just a theory. The market seems to be ignoring the noise and focusing on the fact that Bitcoin is still strong.
Final summary
- The recovery from $62,000 to almost $68,000 shows that buyers are still active at key support levels.
- Schiff links Bitcoin’s strength to political support, but the market’s recent move seems technical and not political.