Peter Schiff Warns Bitcoin (BTC) Risks Deeper Drop From $75,900

Schiff: the Real Selloff Has Not Started

Gold advocate and longtime crypto critic Peter Schiff says the sharpest drop in Bitcoin (BTC) still lies ahead, arguing that markets have not fully priced the political shift that followed the United States midterm elections. Speaking on his program, The Peter Schiff Show, the economist warned that the recent weakness in the Bitcoin (BTC) price is only the opening move of a much larger slide. He built the claim on the week's tape: BTC lost about 3% over the past seven days, while gold gained roughly 2.75% and silver about 2%. In his reading, the asset continues to move alongside technology stocks and the Nasdaq rather than acting as a safe haven, and he treats that behavior as evidence that it has not earned the refuge status its supporters assign to it. When he made the remarks, the asset traded near $75,900, a level he noted sits very close to Strategy's average Bitcoin purchase cost of roughly $75,500 to $75,600. Schiff then reached back to the 2024 presidential election for his analogy. Bitcoin rose only modestly at first after Donald Trump's victory, he recalled, before a powerful rally carried it to $126,000. He believes a comparable process could now unfold in reverse, because investors have not yet absorbed what the Republicans' midterm loss means for the asset, and the decline so far may be just the start.

2028 Scenario and the Strategy Critique

Schiff's bearish case rests on a political scenario rather than on chain metrics. He predicts the Democrats will win the 2028 presidential election and secure a strong majority in Congress, producing a far more hostile regulatory environment for the sector than the one in place today, with consequences for investor participation that he says the market has not digested. The centerpiece of the argument is the possible disappearance of the backing the Trump administration has extended to the asset. He credits that support with much of the investor interest behind the rally and expects investor expectations to change sharply once it ends. He goes further than most skeptics: a Democrat administration taking office in 2029 could abandon plans to expand the United States Strategic Bitcoin Reserve and could even sell the Bitcoin (BTC) held in the reserve at market price, without regard to where the market stands at the time. His remarks landed at the center of this weekend's Bitcoin news cycle. The same broadcast carried a pointed assessment of Strategy's treasury program. The company under Michael Saylor has bought Bitcoin for more than six years, yet the asset now trades only slightly above its average purchase cost, and Schiff argues that the same capital in gold or the S&P 500 index would have produced a far higher return. He also noted the program is running well behind the 30% annual appreciation Saylor himself once projected, and read the accumulation as a treasury strategy built on a permanent HODL of corporate coins. Behind the preference for metals sits a macro forecast: widening US budget deficits, accelerating inflation and a weaker dollar, conditions he says will lift demand for gold and silver. His advice to holders is direct: sell the Bitcoin (BTC) and move into physical gold and silver, because a market standing on political support cannot defend its current levels once that support fades.

The argument is political, which is what makes it checkable against the tape rather than a matter of belief. The Bitcoin Maximalism camp has long pitched the proof-of-work asset as digital gold; the past week handed Schiff his best exhibit, with BTC down about 3% while gold and silver rose. The load-bearing number in his case is Strategy's cost basis: with the asset only slightly above the $75,500 to $75,600 average, a further leg down would leave a six-year accumulation program near breakeven on its whole position. Strategy recently put its Bitcoin (BTC) bank adoption index at 34% for Q3, a reminder that its own framing is infrastructure rather than trading. The coin's tests of $76,000 resistance after the AI regulation selloff, covered in our earlier AI regulation selloff report, already showed thin demand above the market. Whether the 2028 scenario Schiff sketches arrives or not, the sensitivity of prices to one administration's posture is itself the risk he is pointing at. Our Bitcoin technical analysis keeps the levels around Strategy's cost basis under review.