Key Takeaways
- The economist Peter Schiff addresses Donald Trump’s tariffs as more dumb than the president’s Strategic Bitcoin Reserve.
- He noted that the recent economic policies of the US president will lead to significant losses for retail investors.
- Peter Schiff expressed his distrust of and opposition to Trump’s economic views earlier.
Economist and long-time Bitcoin critic Peter Schiff has come up with his recent comments on Donald Trump’s tariffs and other economic changes taking place in the US. A popular image in the US economic space, Schiff has always been vocal about his ideas and thoughts, often making headlines every now and then. According to his latest comment, the crypto landscape in the US is beginning to crack with the president’s new tariffs. On his recent X post, Schiff noted that crypto is “finally starting to crack.”
The latest tariff p[olicis of Donald Trump has started to affect the economic market since its announcement last Friday. According to Peter Schiff, the new tariffs have triggered declines in digital assets, cryptocurrencies, and equities worldwide. Schiff, who earlier criticised the President’s Strategic Bitcoin Reserve law, noted that until the tariffs were announced, he thought that the reserve law was the dumbest decision by Trump’s government. “I thought the dumbest thing Trump would do was establish a Strategic Bitcoin Reserve. I was wrong,” said Peter Schiff.
Peter Schiff’s Observation Of The Crypto Market
Along with his recent comment on the tariff plan, Peter Schiff also noted the market performance of some major cryptocurrencies. Although Bitcoin was traded at a good price, with the announcement of the tariff plans, Bitcoin fell by over 5.6%, reaching a live price of $78,769. This marks a dip of 27% compared to its all-time high price of $108,786, marked on January 20, 2025.
A similar dip was experienced by some other popular cryptocurrencies like Ethereum and Nikkei 225, and others. Ethereum dipped almost 12%, reaching a price of $1,591. Compared to the token’s peak performance in November 2021, the current price is reduced by almost 67%.
The recent policies and laws not only affected the US market but also the global landscape. The significant dips and changes in the market hint at the potential for high volatility in the crypto world. As mentioned, along with the US market, changes and dips were seen in other parts of the world. In Asia, the mainly affected coins include Japan’s Nikkei 225 and Taiwan’s Taiex. While Nikkei 225 fell by 8.9% on Monday morning, the Taiex coin experienced a drop of nearly 10%. These dips have triggered circuit breakers for several popular companies like TSMC and Foxconn.
The liquidity of the crypto market also heightened in the last couple of days, according to reports. Analyzing the current market conditions, it is clear that over $892 million in positions were wiped out in the last 24 hours. This also includes $300 million from Bitcoin longs and shorts.
Along with these popular cryptocurrencies, Schiff also pointed out the performance of the Official Trump memecoin. He addressed the Trump memecoin to be “appropriate,” adding that the coin was leading to its decline. The current market condition suggests that the Trump token is facing a decline of 13.6% and is now being traded at $7.93. So, this shows a 89.1% dip from its all-time high of $73.43 recorded on January 19.
Peter Schiff’s Criticisms Of Crypto
A long-time critic of crypto, Peter Schiff, has also expressed his concern over the industry leaders’ support for all the latest laws and changes implemented by Trump. He noted three possibilities for this attitude and unwavering support. “There are three possible explanations,” said Schiff. “1) They’re actually this dumb? 2) They need to back anything Trump does to secure his continued support. 3) They believe the economic harm will benefit Bitcoin.”
A similar opposition and criticisms were also stated by Schiff for the Bitcoin Strategy Reserve bill and the other alterations made by Trump in recent days, suggesting that all of them would severely affect the retail investors worldwide.